Sharekhan is bullish on Ratnamani Metals and Tubes has recommended buy rating on the stock with a target price of Rs 1225 in its research report dated December 30, 2019.
Sharekhan's research report on Ratnamani Metals and Tubes
We fine tune our estimates and revise upwards earnings by 16% and 9% for FY2020E and FY2021E to factor in the favourable impact of lower corporate tax rate of 25.2% (to be opted in Q3FY2020). Q3FY2020 performance is expected to remains strong, as order intake has been robust and pace of execution has been healthy. Moreover, PAT is expected to jump (one-time impact) owing to reduced tax rate. Management has reiterated its revenue and margin guidance of Rs. 2,600 crore-2,750 crore and 16-18%, respectively, for FY2020, as stated during Q2FY2020 results concall, as demand outlook in key user industry looks encouraging.
We reiterate our Buy rating on Ratnamani Metals & Tubes Limited (RMTL) with a revised PT of Rs. 1,225.
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