Rain Commodities has target of Rs 237.25: Joshi

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Rain Commodities has target of Rs 237.25: Joshi

Rain Commodities has target of Rs 237.25, says Sharmila Joshi, Co-Head PCG Sales, Emkay Global Financial Services.

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ALSO READ See previous views by Sharmila Joshi See what other Experts & Brokerages are saying about Rain Commoditie See messages about Rain Commoditie Rain Commoditie BSE | NSE 30/05/12 Are Mutual Funds betting on Rain Commoditie?

Rain Commodities has target of Rs 237.25, says Sharmila Joshi , Co-Head PCG Sales, Emkay Global Financial Services.

Joshi told CNBC-TV18, "Rain Commodities declared their numbers for the full year ending December 2009 yesterday and we have seen that revenues have in fact shown an increase of 10% for a year on a consolidated basis. I think the profits have been down but they have also managed to get their debt down. So I think that is always a good thing when you are looking at a company and if they manage to work on the gross debt as well as the net debt that is a positive sign."

She further added, "They are talking of hiving of their cement division or have a JV, so that they will be able to raise funds for that separately as well as make a global holding company for the CPC or the calcined petroleum coke business, so that they can raise funds in that as well. So I think both these moves - of course these are subject to shareholder and regulatory approvals - but will mean the end of a lot of problems that Rain Commodities has been facing and I think that operationally too they sent a very strong signal when you had aluminum markets down and in spite of that their CPC business has held on."

"I think that going forward when you see that a lot of aluminum capacity is coming up, that is where you will see the ramp up coming for the CPC business. So this is the stock that I have bought with a target of Rs 237.25."