Brics PCG has given a 'Buy' recommendation for Lakshmi Energy & Foods with a price target of Rs 1,315 based on the good numbers reported by the company.Revenues for Q1FY07 grew by 15.3% yoy to Rs 1,600 crore as compared to Rs 1,400 crore during Q1FY06.This was led primarily by higher realisations on rice and its byproducts. Operating profit rose 98.8% YoY to Rs 30.48 crore with a considerably higher margin of 18.6% compared to 10.8% in Q1FY06.Net profit stood at Rs 25.15 crore, 141% higher than the previous year-ago quarter. This translates into an annualised EPS of Rs 88 on a diluted equity base of Rs 114.3mn.At the current price the stock is quoting at 9.2x and 5.4x on FY07E and FY08E earnings of Rs 85.9 and Rs 145.4 respectively. At the target price of Rs 1,315, the stock would quote at 15.3x and 9x respectively.
