Buy Kalyani Steel, tgt Rs 771 : Prime Broking

Prime Broking has maintiaend buy rating on Kalyani Steels with target price of Rs 771, in tis January  03, 2007 research report. "We have valued KSL using the SOTP method. While the core steel business has been valued on a P/BV basis, the investment portfolio and KSL's 45% stake in SJK Steel have been valued at 30% discount to current value. At CMP of Rs 534, the stock is trading at 3.8x our FY09E book value per share. Adjusting for the investments value per share of Rs 443 and Rs 46 per share on account of KSL's 45% stake in SJK Steel, the core steel business is trading at mere 0.3x BVPS and 1.1x EV/EBITDA based on our FY09 estimates, making investment case for KSL an absolute no-brainer. Based on the company's expected growth in its core business and highly attractive valuations we rate the stock as a STRONG BUY with a target price of Rs 771 per share by Sep'08 (upside of 44%)," according to Prime Broking report. 

Disclaimer: The views and investment tips expressed by investment experts on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decision.