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Buy Finolex Cables; target of Rs 85: Angel Broking
Angel Broking is bullish on Finolex Cables and has recommended buy rating on the stock with a target of Rs 85 in its September 21, 2010 research report.
Angel Broking is bullish on Finolex Cables and has recommended buy rating on the stock with a target of Rs 85 in its September 21, 2010 research report.
"Finolex Cables is poised for a strong growth over the next few years, owing to entry in the verticals of High Tension (HT) and Extra High Voltage (EHV) Cables and market share expansion in the existing Low Tension (LT) Cables segment. The rapid ramp up of production at the Roorkee plant has already started delivering results. The company has further increased the capacity at this plant by 50%. The proximity to the growing North Indian markets and tax benefits from this plant are expected to boost the turnaround of the company."
"By FY2012, these losses are estimated to decline to Rs 24 crore from Rs 76 crore in FY2010. We believe attractive valuations of 6.3x FY2012E EPS and 1.1x FY2012E BV provides a good entry point for investors. We have valued the stock at 9x FY2012E EPS which result into target price of Rs 85 'Buy'," says Angel Broking research report.
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