Feb 14, 2017 01:52 PM IST | Source: Moneycontrol.com

Buy GMDC; target of Rs 140: HDFC Securities

HDFC Securities is bullish on GMDC has recommended buy rating on the stock with a target price of Rs 140 in its research report dated February 10, 2017.

Buy GMDC; target of Rs 140: HDFC Securities

HDFC Securities' research report on GMDC

These numbers help reaffirm our thesis on GMDC i.e. competitive pricing drives volumes, overriding mine-specific issues. As GST comes into force from July 1, GMDC’s competitiveness will further increase, aiding volumes further.

Outlook

This will help GMDC maintain its volumes even when international coal prices plunge, as in FY16. We upgrade our TP to Rs 140, mainly on increased volume assumptions (5.0x FY19 EV/EBITDA).

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