Expected improvement in the overall capex cycle augurs well for the company going forward.

After a weak FY09 and part of FY10 in terms of order inflows, the traction in order inflows in the last three quarters has improved to a great extent witnessing a growth of 124% (YoY basis).

Healthy order book of Rs15bn (1.4xFY10 revenue) and robust order pipeline of Rs. 40bn provides visibility.

At CMP of Rs78, the stock is very attractively valued at a PER of 8.1xFY12E. We remain positive on the stock and maintain our BUY recommendation with a target price of Rs115 (12x FY12E).