Buy CMC, says Jigar Shah

Buy CMC, says Jigar Shah, Sr VP and HOR, Kimeng Sec India.

Shah told CNBC-TV18, "We are buyers on CMC and we feel that the stock offers very strong upside because of the momentum in all the business segments and we are still going to see a 25% Earnings Per Share (EPS) growth in the FY12 with very strong margin. So we are quite happy with CMC although it has missed some upside in earning which we thought."
The company's trailing 12-month (TTM) EPS was at Rs 102.79 per share. (Mar, 2011). The stock's price-to-earnings (P/E) ratio was 19.90. The latest book value of the company is Rs 417.37 per share. At current value, the price-to-book value of the company was 4.9. The dividend yield of the company was 0.98%.