Friday 7 November 2008

Buy India Cements, target of Rs 147: Motilal Oswal

Motilal Oswal has maintained its buy rating on India Cements with a target of Rs 147 in its November 3, 2008 research report. "Lower interest cost and lower tax boosts recurring PAT to Rs 1.55 billion. Net sales grew by 24% to Rs 9.5 billion, driven by 8% YoY (4.8% QoQ) higher realizations to Rs 3,605/ton and volume growth of 6.9% to 2.43 mt."

"We are maintain our earnings estimates for FY09E at Rs 24.7. However, our earnings estimates for FY10 are revised downward by 11.6% to Rs 21.7 to factor in for change in cement price assumption to Rs 10/bag decline in FY10 (v/s Rs 5/bag decline earlier). Our estimates do not factor in financials of the IPL venture (and hence any value for the IPL venture as of now). The stock trades at 4.2x FY10E EPS (fully diluted, but adj. for treasury stock), 3x FY10E EBITDA and USD 48/ton. Maintain Buy, target of Rs 147," says Motilal Oswal's research report.

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Source: Moneycontrol

Posted by Harsh at 07:35

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