Moneycontrol
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.

Buy Ratnamani Metals & Tubes; target of Rs 770: Centrum


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.


Outlook


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.

For all recommendations, click here

Disclaimer:
The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
Sections
Follow us on
Available On