Firstcall Research is bullish on Goa Carbon and has recommended buy rating on the stock with a target of Rs 107 in its November 27, 2012 research report.
“Goa Carbon Limited is a public limited company and is in the business of manufacture and marketing of Calcined Petroleum Coke. The company's calcination plant of 75,000 tpa capacity is located in southern Goa, 40 kms away from the Mormugao port. It has a well equipped laboratory and quality control systems and procedures. The plant is ISO 9001:2008 certified by Bureau Veritas. It is also 14001:2004 certified. The Goa plant has the largest mechanical sieving and screening facilities for petcoke in India. The Company also has two other plants, at Bilaspur in Chattisgarh and at Paradeep in Orissa. The company is a regular supplier to aluminium smelters, graphite electrode and Titanium Dioxide manufacturers, as well as other users in the matallurgical and chemical industries. With the quality of Goa Carbon's product being well accepted by the end users both in India and overseas, Goa Carbon is now firmly established as a leading Indian petcoke calciner. Goa Carbon Limited is part of the DEMPO GROUP, a reputed business house in Goa with offices in the metro cities of India and a turnover exceeding USD 100 million.”
“Goa Carbon Ltd is a public limited company and is in the business of manufacture & marketing of Calcined Petroleum Coke, reported its financial results for the quarter ended 30 Sep, 2012. The Second quarter witnesses a healthy increase in overall sales as well as profitability on account of the Company is continuously innovating & discovering new methods and concepts to improve the quality of CPC & to achieve efficiency in manufacturing operations. The company’s net profit jumps to Rs.110.38 million against Rs.40.73 million in the corresponding quarter ending of previous year, an increase of 171.00%. Revenue for the quarter rust by 25.33% to Rs.976.65 million from Rs.1307.92 million, when compared with the prior year period, the company is always increase its selling prices in line cost of imported raw material which varies substantially from time to time. Reported earnings per share of the company stood at Rs.12.06 a share during the quarter, registering at 171.00% increase over previous year period. Profit before interest, depreciation and tax is Rs.151.07 millions as against Rs.78.78 millions in the corresponding period of the previous year.”
“At the current market price of Rs.94.40, the stock P/E ratio is at 6.10 x FY13E and 4.73 x FY14E respectively. Earning per share (EPS) of the company for the earnings for FY13E and FY14E is seen at Rs.15.48 and Rs.19.95 respectively. Net Sales and PAT of the company are expected to grow at a CAGR of 12% and 26% over 2011 to 2014E respectively. On the basis of EV/EBITDA, the stock trades at 8.37 x for FY13E and 7.08 x for FY14E. Price to Book Value of the stock is expected to be at 0.93 x and 0.77 x respectively for FY13E and FY14E. The second quarter witnesses a healthy increase in overall sales as well as profitability on account of powerful combination of exciting products of the Company is continuously innovating and discovering new methods and concepts to improve the quality of CPC and to achieve efficiency in manufacturing operations. We expect that the company surplus scenario is likely to continue for the next three years, will keep its growth story in the coming quarters also. We recommend ‘BUY’ in this particular scrip with a target price of Rs 107 for medium to long term investment,” says Firstcall Research report.
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