Hold on Alstom T&D with a target at Rs 400: JM Financial

JM Financial Institutional Securities Limited maintains hold rating on Alstom T&D post March quarter results with a 12-month target price of Rs 400.

The company reported 8 per cent YoY drop in FY16 profit, due to 27 per cent YoY drop in 4Q16 sales, on change in accounting policy which now factors extended milestones for revenue recognition.

"We cut estimates factoring the impact of slower sales growth and factoring execution of Champa-II HVDC project (20% of OB) into FY17-18. The silver lining however, is new set of offerings from GE (GE acquired Alstom globally) in solar or wind and industrial automation segment," said the brokerage note.