Religare is bullish on Punj Llyod. It has maintained ‘buy’ rating on the company with a target price of Rs 411.

According to Religare, investors can purchase the stock between Rs 260-265 with a strict stop loss of Rs 240.

Today, the company’s shares opened at Rs 260, as against its last closure at Rs 272.85 on Friday (June 6), on the Bombay Stock Exchange (BSE). Current EPS and P/E ratio stood at 7.30 and 35.68 respectively. The share price has seen a 52-week high of Rs 589.1 and a low of Rs 228.5 on BSE.

The stock will achieve the target price as the company has aggressive growth plans and strong operating capabilities.

Punj Lloyd, on June 5, has signed up a collaboration contract with Singapore Technologies Kinetics. The Indian Government issued Punj Lloyd a license for making guns, rockets and missile artillery systems and related equipment in addition to other defence equipment.

Under this deal, both ST Kinetics and Punj Lloyd will share up their resources for the implementation of supply agreements for the Ministry of Defence, Government of India.

The company also secured Rs 6.49 billion seal for the motor spirit quality upgradation project of Indian Oil Corporation for its Barauni Refinery.

Indian Oil has yet again entrusted Punj Lyod to establish this prestigious project that will upgrade its refinery at Barauni to perk up quality of (Gasoline) to meet up euro-III emission norms for reducing vehicular pollution.

Moreover, the group acquired a strategic 74% stake in Technodyne International, Eastleigh, UK for an undisclosed amount. Technodyne International is a specialist engeneering, design and consultancy company specializing in large scale cryogenic and high pressure tanks.

The company announced strong performance in Q4FY2008 registering revenue growth of 38% yoy to Rs 23.5 billion, 60 bps expansion in EBIDTA margins and net profit growth of 35% yoy to Rs 1.2 billion which is in line with analysts’ estimations.