Buy Vesuvius India; target of Rs 384: Firstcall Research

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Buy Vesuvius India; target of Rs 384: Firstcall Research

Firstcall Research is bullish on Vesuvius India and has recommended buy rating on the stock with a target of Rs 384 in its December 30, 2010 research report.

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RELATED NEWS Buy HCC; target of Rs 52: IIFL Buy ONGC; target of Rs 1330: IIFL Buy United Phosphorous; target of Rs 230: Emkay ALSO READ See previous views by Firstcall Research See what other Experts & Brokerages are saying about Vesuvius India See messages about Vesuvius India Vesuvius India BSE | NSE 29/05/12 Are Mutual Funds betting on Vesuvius India?

Firstcall Research is bullish on Vesuvius India and has recommended buy rating on the stock with a target of Rs 384 in its December 30, 2010 research report.

"Vesuvius is a world leader in the design, engineering, manufacture and delivery of refractory products, systems and services for high-technology industrial applications. The company products are designed and conceived by material science specialists supported by metallurgists and fluiddynamic experts using state-of-the-art technologies. Vesuvius has built its business model on proximity to its customers. With 70 plants worldwide, Vesuvius supplies products and services anywhere at any time."

"During the quarter, the company has reported Net Profit decreased to Rs 129.40 million from Rs 105.30 million in previous year same quarter. Net Sales and PAT of the company are expected to grow at a CAGR of 12% and 21% over 2008 to 2011E respectively. Price to Book Value of the stock is expected to be at 2.58 x and 2.14 x respectively for CY10E and CY11E. Earning per share (EPS) of the company for the earnings for CY10E and CY11E is seen at Rs 24.24 and Rs 26.86 respectively. On the basis of EV/EBITDA, the stock trades at 7.80 x for CY10E and 7.03 x for CY11E. At the current market price of Rs 334, the stock is trading at 13.78 x CY10E and 12.43 x CY11E respectively. 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 384 for medium to long term investment," says Firstcall Research report.

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