Buy Jindal Saw, target of Rs 910: Sharekhan

Sharekhan has maintained its buy rating on Jindal Saw with a price target of Rs 910 in its June 16, 2008 research report. "We believe that the core business of JSL would continue to do well on the back of buoyant demand outlook. As mentioned in our previous update, the margins of the DI pipes division might be impacted due to the rising coking coal prices. However, the capacity expansion and the commencement of the captive power plant should help mitigate the adverse impact to a certain extent."

"At the current level, the stock is trading at 6.3x its CY2009E earnings and is available at an enterprise value (EV)/ earnings before interest, depreciation, tax and amortisation (EBIDTA) of 3.2x. We maintain our Buy recommendation with a price target of Rs 910," says Sharekhan's research report.

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