3602 Investors following Rohit Ferro Tec. Share this News with them.
0
Like this story, share it with millions of investors on M3
Buy Rohit Ferro Tech, target of Rs 216: Religare
Religare has recommended a buy rating on Rohit Ferro Tech with a target price of Rs 216. Riding high on the ferro alloy super cycle, as a severe ferro chrome supply crunch in the world market has escalated prices of this metal to unprecedented levels.
Religare Research has recommended a buy rating on Rohit Ferro Tech with a target price of Rs 216 in its June 16, 2008 research report. "Riding high on the ferro alloy super cycle, as a severe ferro chrome supply crunch in the world market has escalated prices of this metal to unprecedented levels. Rohit Ferro is thus witnessing a sharp increase in profit per tonne.Timely expansion coupled with increasing feedstock linkages would further bolster growth."
"Acquisition of an operational coal mine in Indonesia (60% economic interest in thermal coal reserve of 20mn tonnes and coking coal reserve of 5 mn tonnes) and arrangements with a chrome ore mine in Iran would provide substantial raw material links. Coal mine would meet input requirements of a 110MW captive power plant coming up by FY10, besides generating revenues from sale of coal in the open market. Business valued at Rs 216 using an average of 5.5x P/E and 5x EV/EBITDA on FY10E, based on industry average multiples," says Religare's 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.
