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Last Updated : Apr 30, 2013 11:44 AM IST | Source: Moneycontrol.com

Buy Vesuvius India; target of Rs 395: Firstcall Research

Firstcall Research is bullish on Vesuvius India and has recommended buy rating on the stock with a target price of Rs 395 in its April 27, 2013 research report.

 
 
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Firstcall Research is bullish on Vesuvius India and has recommended buy rating on the stock with a target price of Rs 395 in its April 27, 2013 research report.


"Vesuvius India is a global leader in metal flow engineering, providing a full range of engineering services and solutions to its customers worldwide, principally serving the steel and foundry industries. The company’s net sales registered a 3.72 percent increase and stood at a record Rs. 1445.80 million from Rs. 1394.00 million over the corresponding quarter last year. The company’s net profit registered a 52.60 percent increase and stood at a record Rs. 176.40 million from Rs. 115.60 million over the corresponding quarter last year. Vesuvius plc has entered into an agreement to sell its Precious Metals Processing Division ("PMP") to Heimerle + Meule GmbH ("H+M") for a cash consideration of €56.8m, payable on completion. Vesuvius India Ltd has recommended to the Members of the Company a Dividend at the rate of Rs. 4.50 per share on 2,02,96,080 equity shares of face value of Rs. 10/- each in respect of the year ended December 31, 2012. Net Sales and PAT of the company are expected to grow at a CAGR of 4 percent and 11 percent over 2011 to 2014E respectively.


The company achieved a turnover of Rs. 1445.80 million for the 1st quarter of the current year 2013 as against Rs. 1394.00 millions in the corresponding quarter of the previous year. The company has reported an EBITDA of Rs. 302.20 millions and a net profit of Rs. 176.40 million against Rs. 115.60 million reported respectively in the corresponding quarter of the previous year. The company has reported an EPS of Rs. 8.69 for the 1st quarter as against an EPS of Rs. 5.69 in the corresponding quarter of the previous year.


Outlook and Conclusion: At the current market price of Rs.362.40, the stock P/E ratio is at 11.00 x CY13E and 9.85 x CY14E respectively. Earning per share (EPS) of the company for the earnings for CY13E and CY14E is seen at Rs.32.95 and Rs.36.79 respectively. Net Sales and PAT of the company are expected to grow at a CAGR of 4 percent and 11 percent over 2011 to 2014E respectively. On the basis of EV/EBITDA, the stock trades at 6.26 x for CY13E and 5.70 x for CY14E. Price to Book Value of the stock is expected to be at 1.79 x and 1.52 x respectively for CY13E and CY14E. We recommend buy in this particular scrip with a target price of Rs 395 for Medium to Long term investment," says Firstcall Research report.


Public holding more than 90% in Indian cos

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First Published on Apr 30, 2013 11:44 am
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