Buy Ramco Industries; target of Rs 86: Firstcall Research

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Buy Ramco Industries; target of Rs 86: Firstcall Research

Firstcall Research is bullish on Ramco Industries and has recommended buy rating on the stock with a target of Rs 86 in its October 08, 2010 research report.

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Firstcall Research is bullish on Ramco Industries and has recommended buy rating on the stock with a target of Rs 86 in its October 08, 2010 research report.

"Ramco Industries (RIL) is one of the best performing, highly efficient producers of Fibre Cement Sheets in India and is the Market leader. RIL is operating the most modern fibre cement roofing sheets and pipe plants in India. RIL has also set up a most advanced plant in Srilanka. It has built a nation-wide dealer network and has a strong customer base among architects and builders. The company plans to set up a new plant for manufacture of Fibre Cement Product with an Installed Capacity of 1,20,000 M.T. p.a. at SIPCOT Industrial Growth Centre, Gangaikondan, near Tirunelveli, Tamilnadu."

"Net profit of the company has increased at 50.4% yoy Rs 536 million from Rs 356.50 million of same period of last year. Total revenue for the year stood at Rs 4983.80 million from Rs 4294 which is 16.06% increased than that of a year ago. Net Sales and PAT of the company are expected to grow at a CAGR of 11% and 30% over 2009 to 2012E respectively. On the basis of EV/EBITDA, the stock trades at 4.69 x for FY11E and 4.27 x for FY12E."

"We expect that the company will keep its growth story in the coming quarters also. We recommend 'BUY' in this particular scrip with a target price of Rs 86 for medium to long term investment," says Firstcall Research report.

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To read the full report click on the attachment