India Infoline has recommended buy rating on Garware Offshore with a targetof Rs 318, an upside of 31.5%, as per their report on November 30, 2007.
"Garware Offshore Services, GOSL is adding four vessels to its fleet in CY08and one in CY09. The full year benefit of the vessels to be delivered in2008, would reflect in CY09 financials. We expect GOSL to register a CAGR of57.6% in revenues and 64% in PAT during CY06-CY09. The stock at CMP of Rs242 is available at 8.4x CY09 earnings. With long term contracts tied up formost of the vessels, we believe there exists high degree of visibility forfuture revenue growth. At 11x CY09E earnings of Rs 28.9, the target priceworks out to Rs 318, an upside of 31.5%. We recommend a BUY." according toIndia Infoline research report.
