Edelweiss is bullish on Vesuvius India has recommended buy rating on the stock with a target price of Rs 1378 in its research report dated February 28, 2017.
Edelweiss' report on Vesuvius India
Vesuvius India’s (VIL) Q4CY16 revenue growth of 13.9% belied estimates, on lower sales in December hit by DeMon and lower exports. EBITDA and PAT growth of 4.6% and 4.2% YoY, respectively, came below estimates impacted by the change in product mix, higher retirement expenses (due to changes in actuarial valuations) and one-off provision for entry tax for earlier years.
With the company in a sweet spot we expect it to post strong sales and earnings CAGR of 15.4% and 20.8%, respectively, with 253bps RoCE expansion to 27.6% over CY16-18. Maintain ‘BUY’ with TP of INR 1,378 (22x CY18E EPS).
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First Published on Mar 1, 2017 01:23 pm