>Punj lloyd(BNP PARIBAS)

Oil & gas projects delayed – growth estimates at risk
We initiate coverage on Punj Lloyd, a global firm specializing in
Engineering, Procurement and Construction (EPC) projects for the oil &
gas industry, with a REDUCE rating and TP of INR146. The mid-anddownstream
oil & gas industry contributes approximately 70% of the
company’s revenue. The sudden sharp decline in crude oil and natural
gas prices, demand, and the global credit crunch has resulted in delays
and cancellations of several new projects across the Middle East and
Southeast Asia. We expect the slowdown to gather momentum over the
near term; so, new projects may be deferred until the prevailing
conditions improve.

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