Feb 15, 2017 03:09 PM IST | Source: Moneycontrol.com
Buy Ratnamani Metals & Tubes; target of Rs 770: Centrum
Centrum is bullish on Ratnamani Metals & Tubes has recommended buy rating on the stock with a target price of Rs 770 in its research report dated February 08, 2017.
Centrum's research report on Ratnamani Metals & Tubes
Ratnamani Metals & Tubes (RMTL) posted solid Q3 results (38%/30% YoY EBITDA/PAT growth) on account of increased realisations led by execution of high value & better margin orders in SS as well as CS LSAW division. Though order visibility for both SS (refinery upgradation and expansion capex kick-started) and CS (oil & gas line pipe orders from GSPL/GAIL) divisions remains good, inflow has remained slow due to delays and volatility in commodity prices.
We continue to believe in RMTL’s long-term growth story, with expected strong domestic capex over FY18-19E and completion of expansion in the high-margin SS business by FY19E. Retain Buy with a revised TP of Rs770 based on DCF valuation.
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