Monday, 27 October 2008

Buy Shree Cements, target of Rs 653: Karvy

Karvy Stock Broking has recommended a buy rating on Shree Cements with a target of Rs 653 in its October 27, 2008 research report. "Net sales grew by 34.9% yoy to Rs 6.29 billion mainly on account of volume growth of 42% to 2.0 million tones (inclusive of clinker sales). The company has reported adj. net profit of Rs 1.07 billion."

"At the current market price of Rs 378, the company is trading at PER multiple of 3.4x, EV/ EBIDTA multiple of 2.5x and EV/ton basis at USD 46/ tones on FY10E earnings. We have valued the company on EV/EBIDTA of 4x and rate the company as BUY with price target of Rs 653," says Karvy Stock Broking's rearch report.

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Source: Moneycontrol

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