Vesuvius can double in 2 years: DD Sharma

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Vesuvius can double in 2 years: DD Sharma

DD Sharma, Anand Rathi Securities is of the view that Vesuvius should double in 2 years. The company is doing very well; it is expanding also very well. This is a zero debt company and the returns ratios are very fantastic for this company.

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Excerpts from Markets Midday on CNBC-TV18 Watch the full show » ALSO READ See previous views by DD Sharma See what other Experts & Brokerages are saying about Vesuvius India See messages about Vesuvius India Vesuvius India BSE | NSE 31/05/12 Are Mutual Funds betting on Vesuvius India?

DD Sharma , Anand Rathi Securities is of the view that Vesuvius should double in 2 years. The company is doing very well; it is expanding also very well. This is a zero debt company and the returns ratios are very fantastic for this company.

Sharma told CNBC-TV18, "These particular refractories are used in the steel making. When we make this steel through electric arch furnace these refractories are required everywhere. Most of the steel nowadays is made through electric arch furnace route only. Vesuvius is using not only the Indian arm but also the Vesuvius, as a group is a global market leader in this kind of technology. They manufacture best of the refractories for the steel industry."

He further added, "The company is doing very well; it is expanding also very well. The potential of the demand for the steel refractories in India is significant; we can see from the expansions of Tata Steel, Sail, JSW Steel or even the new comers like the Mittals or the Boscos, everyone will add significant demand for the refractories. Therefore outlook for the refractory business is significantly better."

"This is a zero debt company and the returns ratios are very fantastic for this company. We see for the December 08 the earnings of the company growing to around Rs 22-25 per share and compared to that the stock price is around Rs 245 right now that is very attractive for MNC stock, which is market leader in its field and which is having the patented technologies for this kind of products. So that's why it looks very attractive to me for long-term investment. In two years time it should double."