Buy Monnet Ispat; target of Rs 193: Angel

Angel Broking reports on Monnet Ispat

"Monnet Ispat is on the verge of a massive ex.pansion in its steel business. The long-term stock performance will be determined by the timely expansion of the 1.5mtpa steel plant and unlocking of value in Monnet Power, which is implementing the 1,050 MW power project. Although there have been delays in the commencement of these projects, most of these projects would be backed by captive resources, thus ensuring robust profitability. Hence, we recommend Buy on the stock with a target price of Rs 193, valuing the steel business at 4.0x FY2015E EV/EBITDA and investment in Monnet Power at 0.8x P/BV," says Angel Broking research report.

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