Buy Vesuvius India, target of Rs 320: Angel

Angel Broking has maintained its buy rating on Vesuvius India with a target price of Rs 320 in its April 29, 2008 research report. "Vesuvius clocked 17% yoy growth in Revenue to Rs 81.6 crore (Rs 69.7 crore) for 1QCY2008, which was in line with our estimates. The increase in Topline during 1QCY2008 was largely due to trading of refractory products. Also, Vesuvius had undertaken a de-bottlenecking exercise at its plants in the last quarter of CY2007 owing to which production capacities for shaped and unshaped products increased. Benefit of increased production capacities would be available through CY2008."

"At the CMP of Rs 224 the stock is trading at 11.7x and 8.9x CY2008E and CY2009E EPS. We maintain a Buy on the stock, with a Target Price of Rs 320," says Angel's research report

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