Thursday, August 25, 2011

Subscribe to TD Power Systems IPO: MLR Securities

MLR Securities recommended investors to Subscribe the issue. TDPSL is a market leader in the steam and hydro generators segment in India commanding a healthy RoE of 30% on a consolidated basis. Post issue the company will be almost debt free.

Though the valuations of 15-15.3 times FY11 EPS are at a premium to its listed peer BHEL which is trading at a P/E of 14, we believe it justifies its strong fundamentals. We recommend investors subscribe to this issue at a lower price band of Rs 256 for a long term time frame.

For detail analysis please visit following link: