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Buy Binani Cement; target of Rs 147: KJMC
KJMC Institutional is bullish on Binani Cement and has recommended buy rating on the stock with a 12-month target price of Rs 147. At CMP of Rs 112, the stock trades at P/E of 9.7x and 6.1x FY08E and FY09E earnings of Rs 11.5 and Rs 18.5 respectively.
KJMC Institutional is bullish on Binani Cement and has recommended buy rating on the stock in its December 18, 2007 report. "At CMP of Rs 112, the stock trades at P/E of 9.7x and 6.1x FY08E and FY09E earnings of Rs 11.5 and Rs 18.5 respectively. On EV/EBIDTA basis, it trades at 8.1x and 4.8x FY08E and FY09E respectively. On EV/Tonne basis, the stock trades at USD 138 FY08E and USD 129 FY09E. We expect the demand-supply scenario in Northern region to be firm till first half of FY09E, but after that we expect the supply to exceed the demand in this region. We initiate coverage on BCL with a "BUY" recommendation and a 12-month target of Rs 147, based on 6x EV/EBIDTA. Our target price offers a potential return of 31% over CMP," says KJMC Institutional research report.
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