Buy Rohit Ferro Tech,tgt Rs 190: PINC

PINC research has maintained buy rating on Rohit Ferro Tech with target price of Rs 190,in its June 23, 2008 report. "RFTL, being one of the largest manufacturers of ferro alloys, is best placed to ride the wave in ferro alloy prices. Moreover, the ongoing expansion will impart economies of scale through increased capacities and will also ensure margin expansion due to upcoming power plant. These factors, coupled with the strong ferro alloy cycle, will prove to be EPS accretive. At the CMP of Rs149, it trades at a P/E of 3.2x & EV/EBIDT of 2.6x discounting its FY10E earnings, which appear cheap considering the upcoming scale and operating efficiency. Thus, we maintain our ‘BUY’ rating with a 12-month price target of Rs190" according to PINC report.