PINC Research is bullish on Visa Steel and has recommended buy rating on the stock with a target of Rs 63, in its May 21, 2010 research report.
"At CMP of Rs 38, Visa Steel is trading at a P/E of 6.1 and 3.0 its FY11 and FY12 earnings respectively. We believe with the company's SMS and Rolling Mill commencing by end FY11, it would be in a position to garner higher revenues with sale of value added products and benefit from higher captive power. We introduce our FY12 estimates with the EPS of Rs 12.6 and roll over our target price on FY12 earnings. Hence, we maintain our 'BUY' recommendation on the stock with a revised target price of Rs 63, at which stock would trade at 5x FY12 EPS," says PINC Research report.
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