Thursday 6 November 2008

Buy Tata Sponge Iron, target of Rs 223: Motilal Oswal

Motilal Oswal has maintained its buy rating on Tata Sponge Iron with a target of Rs 223 in its October 22, 2008 research report. "2QFY09 adjusted PAT grew 4x YoY to Rs 728 million. Net sales increased 2.5x YoY to Rs2.4b driven by a 90% YoY increase in sponge iron realizations to Rs 22,035/ton and a 30% increase in volumes to 107,944 tons due to liquidation of inventories. The stock trades at attractive valuations of 0.8x FY10 EV/EBITDA, 3x FY10 P/E, and 0.6x FY10 P/BV. Valuations are cheap. Maintain Buy, target of Rs 223," says Motilal Oswal's research report.

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Source: Moneycontrol

Posted by Harsh at 08:09

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