Hem Securities has recommended a buy rating on Orient Abrasives with a target of Rs 36. Orient Abrasives’ principal activity is to manufacture abrasive grains, refractory and monolithic products.
Hem Securities has recommended a buy rating on Orient Abrasives with a target of Rs 36 in its report on 30th Aug 2008. "Orient Abrasives’ principal activity is to manufacture abrasive grains, refractory and monolithic products. The Company operates in three segments namely Refractories and Monolithics, Oxide Grains and Bonded Abrasives. The company has posted excellent results for the quarter ended June 2008. On the other hand the expenditures have also increased by 20.92 per cent. Operating profit stood at Rs 207.70 million against Rs 66.29 million clocked in Q2FY08 portraying a whopping growth of 213.32 per cent and indicating the operational strength of the company."
"The Indian abrasives industry is characterized by diverse user industries, an insig-nificant threat from substitute products, adequate raw material availability and extensive application in the industry. the stock is trading at Rs 27 which is at 5.89 times to its earn-ings and 1.59 times to its book value of Rs 17.08. Since the stock seems to offer extremely good investment opportunities, we initiate a ‘BUY’ signal on the stock with a target price of Rs 36 in medium to long term investment horizon expecting an appreciation of about 33 % from the current level of Rs 27." says Hem Securities' research 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 decisions.
For further details click on attachment......
To read the full report click here
Set email alert for
ADS BY GOOGLE
video of the day
No definite plans for merger of PSU banks: Banking Secy