Monday 10 November 2008

Buy Maharashtra Seamless, target of Rs 500: PINC

PINC Research has maintained its buy rating on Maharashtra Seamless with a target of Rs 500 in its October 27, 2008 research report. "Maharashtra Seamless Ltd. (MSL) reported revenues of Rs 6 billion for Q2FY09 (+56% YoY). This was driven by buoyant realisations of pipes, which spiked on account of jump in raw material prices. MSL’s strategy of focussing on sizeable and lucrative orders holds the promise of revenue growth and improved profitability in the near term."

"Given the robust demand scenario for seamless pipes over the next 3-4 years, MSL is poised to sharply improve its performance. However, volatile steel prices could dampen demand and curb profitability. Mindful of its cash hoard and high sensitivity to raw material prices, we maintain our ‘BUY’ recommendation but reduce our 18-month price target from Rs 520 to Rs 500," says PINC's research report.

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Source: Moneycontrol

1 comment:

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    ReplyDelete

DISCLAIMER: The author is not a registered stockbroker nor a registered advisor and does not give investment advice. His comments are an expression of opinion only and should not be construed in any manner whatsoever as recommendations to buy or sell a stock, option, future, bond, commodity, index or any other financial instrument at any time. While he believes his statements to be true, they always depend on the reliability of his own credible sources. The author recommends that you consult with a qualified investment advisor, one licensed by appropriate regulatory agencies in your legal jurisdiction, before making any investment decisions, and that you confirm the facts on your own before making important investment commitments.