Buy GMDC; target Rs 142: Sushil Finance
Sushil Finance is bullish on Gujarat Mineral Development Corporation (GMDC) and has recommended buy rating on the stock with a price taget of Rs 142 in its August 12, 2013 research report.
August 20, 2013 / 17:50 IST
Sushil Finance's research report on Gujarat Mineral Development Corporation (GMDC)
"GMDC came out with disappointing set of numbers for Q1FY14. However, we believe the concerns have been overdone and the stock at Rs.96 has factored in all the negatives. It provides a good entry opportunity for long term investors wherein the probability of outperformance is quite in FY15E. The management is actively looking to address the concerns and bring the company back to growth trajectory. We believe this transition though would be painful but will be long-term beneficial to the company. However, in the backdrop of consistently low volumes coupled with delay in price hike decision, we are downward revising our earnings estimate by 25.5 percent & 20.0 percent for FY14E & FY15E to Rs.15.8 & Rs.18.9 respectively. We recommend BUY on the stock with a revised price target of Rs.142 (based on 4x FY15E EBITDA). At the CMP of Rs.96, the stock is trading at 6.1x & 5.1x FY14E & FY15E EPS respectively," says Sushil Finance research report.Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions. 
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