Fortune Financial Services (India) has initiated a coverage on Pratibha Industries (PIL) with `Buy` rating with a price target of Rs 490, as against the market price (CMP) of Rs 356 implying upside of 37.60%, in its report dated Mar. 9, 2010.

``As compared to peers PIL has superior operating profit margin of 12-13% and return ratios. PIL`s sales and net profit have grown at CAGR of 58% and 65% respectively over the last five years. With healthy order inflow and strong economic outlook we expect PIL`s sales and net profit to grow at CAGR of 34% and 37% respectively between FY2009‐2012. We initiate coverage on PIL with Buy rating and target price of Rs 490 based on a PE multiple of 10x on FY 11 earnings. At the target price of Rs 490 PIL will trade at EV/EBIDTA of 5.9x FY11E, `` the brokerage house said.

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