Diamond Power: Kotak Research Report

DIAMOND POWER INFRASTRUCTURE is a virtually fully integrated player in the power distribution projects business. DIAMOND POWER INFRASTRUCTURE has captive facilities to manufacture conductors, cables (LT and HT), transmission towers and transformers. Shortly, DIAMOND POWER INFRASTRUCTURE will also commission its EHV cables plant. DIAMOND POWER INFRASTRUCTURE is mainly a play on the power T&D sector, which is expected to grow significantly in the foreseeable future. The stock of DIAMOND POWER INFRASTRUCTURE is trading at attractive valuations of 9.6x and 7.9x FY11 and FY12 earnings respectively. We recommend a BUY with a target price of Rs.318 based on DCF.