Motilal Oswal has maintained its neutral rating on Nagarjuna Construction Co in its November 12, 2008 research report. "During 2QFY09, interest cost increased to Rs 275 million (+15% QoQ, 18% YoY). Going forward, as the interest cost on working capital and short term debt is reset, interest cost is expected to increase by 50-75bp v/s September 2008 levels. We expect FY09 interest cost at Rs 1.3 billion, up 74% YoY. We expect NCC to report net profit of Rs 1.6 billion in FY09 (+2% YoY) and Rs 2.1 billion (+ 24% YoY) in FY10. At the CMP of Rs 64, the stock is trading at reported PER of 8.8x FY09E and 7.1x FY10E. Maintain Neutral," says Motilal Oswal's research report.
As per Sep 08 share holding pattern of the company (www.bseindia.com), Rakesh Jhunjhunwala is holding 6,250,000 shares and his wife Rekha Jhunjhunwala is holding 9,750,000 shares in Nagarjuna Construction