Buy Uttam Galva; target of Rs 48: Anand Rathi

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Buy Uttam Galva; target of Rs 48: Anand Rathi

Broking house, Anand Rathi has recommended buy rating on Uttam Galva with medium term target of Rs 48 and long term target of Rs 62.

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Broking house, Anand Rathi has recommended buy rating on Uttam Galva with medium term target of Rs 48 and long term target of Rs 62.

Anand Rathi report on Uttam Galva:

"Uttam Galva is one of the big independent steel processor in India, engaged in producing value added products from HRC, viz - CR steel, Galvanised steel and Colour coated sheets. The Rs 350 Crs expansion currently underway, will raise the capacity from - 6 Lakh to 10 Lakh in CR; 4 Lakhs to 7 Lakhs in GP; and 60K to 75K MTs in Colour coated sheets plus also boost productivity and quality of products."

"Stock is available around 3 X for current year's expected earnings and just 2 X for '08 earnings. So there is enough scope for stock price to catch up the peer group valuation and trade at discounting close to 5-6X. One can buy the stock at current price, with stop loss of Rs 33 and can look for the medium term target of Rs 48 and long term target of Rs 62."