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Stock Update :- Prakash Industries Ltd. CMP Rs.173, Maintain Buy, with a target of Rs.300 Prakash Industries has come out with good set of numbers for Q4FY10, with revenue and PAT increasing by 44.5% YoY and 42.2% YoY to Rs.4643.4 million and 737.5 million respectively. Prakash Industries has successfully completed the expansion of its Sponge Iron and Billets capacity to 0.6 MT and 0.7MT respectively in FY10 with a CAPEX of Rs.320Crs. The company is on track for its fully integrated steel operations. It would be fully backward integrated by FY12, post which the company would witness higher profit margins.  Moreover, foray into the highly profitable merchant power business is also likely to boost the EBITDA margins of the company beyond FY12. At Rs.173.2, the stock is trading at a P/E and EV/EBITDA of 5.9x and 3.7x its FY12 estimates. Considering the huge margin expansion and EPS growth from FY12, we maintain our BUY rating on the stock with the price target of Rs.300. BHATIYA PARESH J