Mar 14, 2008, 10.42 AM IST

Buy Esab India, target of Rs 575: Sharekhan

Sharekhan has maintained buy rating on Esab India with target price of Rs 575. The operating profit for the company grew by 33.2% to Rs 19.2 crore. The operating performance of the company continues to be healthy.

Source: Moneycontrol.com

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Sharekhan has maintained buy rating on Esab India with target price of Rs 708 in its March 07, 2008 research report. "The operating profit for the company grew by 33.2% to Rs 19.2 crore. The operating performance of the company continues to be healthy and the margin reported an improvement of 350 basis points yoy to 21.9%.The net profit for the year grew by 25.1% to Rs 53.4 crore against our full year estimates of Rs 57.4 crore."

"We believe, the demand for welding products would continue to be buoyant due to the planned investments in core infrastructure sectors like roads, ports, airports, construction and other industrial sectors in India. ESAB India, the market leader in welding products, is all set to tap this opportunity. Currently, we maintain our estimates for CY2008 and would bring our CY2009 estimates post the AGM of the company. At the current market price, the stock trades at 10.3x its CY2008 EPS and 5.2x EV/EBIDTA. We maintain our Buy recommendation with a price target of Rs 575," according to Sharekhan Research report.

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