Buy Atlas Copco: Motilal Oswal

Motilal Oswal Securities has recommended a "buy" on Atlas Copco.

According to a report issued by the brokerage, the company is an excellent play on India's construction and mining sectors. The report expects new opportunities such as CBM (coal-bed methane) prospecting and CNG compressors to drive 30% EPS CAGR through 2007.

"The company is a major beneficiary of rising industrial capex. It manufactures products like air and gas compressors and pneumatic tools, which are required in most industries," the report said.

The report expects these products to register over 20% CAGR over the next two years on the back of huge expansion activity in sectors like power, automobiles, cement and steel.