Monday 10 November 2008

Ambuja Cements an outperformer: Karvy

Karvy Stock Broking has rated Ambuja Cements as an outperformer with a target of Rs 72 in its November 10, 2008 research report. "Net sales grew by 7.8% yoy to Rs 13.8 billion mainly on the back of realizations growth of 7.2% to Rs 3622/tones. Despite 36.5% increase in other income, RPAT has gone down by 15.8% to Rs 2.50 billion due to higher provision for depreciation."

"At the current market price of Rs 58, the company is trading at PER multiple of 7.9x and EV/EBIDTA multiple of 4.5x on CY09E earnings. We have valued the company discount to historical trough of multiple and rate the company as an outperformer with price target of Rs 72," says Karvy Stock Broking's research report.

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Source: Moneycontrol

Posted by Harsh at 12:45

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