Khambatta Securities' research report on RCI Industries
Headquartered in New Delhi, RCI Industries & Technologies (RCI or the Company), with two manufacturing plants at Baddi (Himachal Pradesh), manufactures copper wire, lead-free solders, tin-alloy solders, copper, brass and stainless steel-strips/ foils/ coils. It also trades, internationally and domestically, in ferrous and non-ferrous metals for a range of electrical and industrial applications.
Outlook
We initiate a Strong Buy on RCI at the CMP of Rs. 232 with a target price of Rs. 350, 50% upside potential. Our target price is based on EV/EBITDA and PE. At the CMP, the stock trades at 7.1x and 5.9x FY18e and FY19e EV/EBITDA respectively and 10.5x and 8.3x EPS. With the company‟s focus on manufacturing, its shift in product mix and positive operating cash-flows, we believe the stock would be valued at 7.8x EV/EBITDA for FY19e and a PE of 11.3x on FY19e EPS.
For all recommendations, click here 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.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
