Sunday 2 November 2008

Buy Mercator Lines, target of Rs 147-160: Networth

Networth Stock Broking has maintained its buy rating on Mercator Lines with a target price range of Rs 147-160 in its October 31, 2008 research report. "Net sales for Q2FY09 have increased by 75.9% to Rs 6493 million against Rs 3690.9 million in Q2FY08. Coal mining Operation contributed 5.7% to this growth. Mercator lines has sold 129000 MT of coal in Q2FY09."

"Going forward we believe MLL to post an EPS of Rs 15 in FY09 and Rs 24.6 in FY10. Apart from this the coal mining operations in Indonesia have began which started contributing to the earnings. At a CMP of Rs 33.55, the stock is trading at P/E of 2.4x and P/BV of 0.89x its FY08 earnings. We have valued the stock at 6x- 6.5x its FY10E consolidated earnings and so our target price range is Rs 147-160. We maintain our ‘BUY’ recommendation on the stock," says Networth's research report.

Disclaimer: The views and investment tips expressed by investment experts on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

Source: Moneycontrol

Posted by Harsh at 11:57

No comments:

Post a Comment

Subscribe to: Post Comments (Atom)
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.