Thursday, 13 November 2008

Buy Kesoram Inds: Motilal Oswal

Motilal Oswal has maintained its buy rating on Kesoram Industries in its November 10, 2008 research report. "Cement business would benefit from the ongoing capacity addition (1.6mt), which would commission by Dec’08. Tyre business would benefit from Greenfield capacity at Uttarakhand, and would enjoy fiscal incentives, thereby driving volume growth and margin expansion. Also, softening rubber prices would also enhance profitability."

"We have revised our earnings estimate downwards by 6% for FY09E to Rs 75.9 and 15.8% for FY10E to Rs 68.6. Valuation at 1.8x FY09E EPS and 3.2x EV/EBITDA are very attractive and doesn’t fully reflect the upside of the capex being undertaken. Maintain Buy," says Motilal Oswal's research report.

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Source: Moneycontrol

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