ISMT has target of Rs 70, says Hemang Jani, Sr Vice President, Sharekhan.
Jani told CNBC-TV18, "ISMT is an integrated steel manufacturer and it has been able to achieve good expansion at the right time. Its capacity stands now at 4,75,000 and because of the commissioning of the power unit in Q4 of 2011, they will be able to achieve a good saving there. We are looking at about 18-19% kind of an operating profit margin and the company is available at about 5.5 times P/E. So with 49% kind of an earnings CAGR, this looks like a very attractive company. Our price target is about Rs 70 but once the quarterly numbers are announced, we would review it further."
The company's trailing 12-month (TTM) EPS was at Rs 5.02 per share. (Sep, 2010). The stock's price-to-earnings (P/E) ratio was 12.56. The latest book value of the company is Rs 39.21 per share. At current value, the price-to-book value of the company was 1.61. The dividend yield of the company was 1.59%.
