Buy Usha Martin; target Rs 96: Asit C. Mehta

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Asit C. Mehta has recommended buy rating on Usha Martin with a target of Rs 96 in its July 30, 2010 research report.

"Usha Martin's 1Q FY11 standalone revenues were in line with our estimates but consolidated revenues were below our estimates. Consolidated net sales increased 10.6% from Rs 6085 million to Rs 6732 million on YOY basis. Consolidated net profit for the quarter increased 30.7% from Rs 320 million to Rs 419 million on YOY basis. Raw material cost decreased significantly on account of recent commissioning of its iron-ore and coal mines. Disappointing performance by subsidiaries and significant increase in inventory remain our key concerns. We reiterate buy rating on the stock but revise our target price downwards from Rs101 to Rs 96," says Asit C. Mehta research report.

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