Buy Monnet Ispat; target of Rs 595: Firstcall Research

Firstcall Research is bullish on Monnet Ispat and has recommended buy rating on the stock with a target of Rs 595 in its September 17, 2010 research report.

“Monnet Ispat’s earning per share (EPS) of the company for the earnings for FY11E and FY12E is seen at Rs 55.36 and Rs 61.28 respectively. Operating profit and PAT of the company are expected to grow at a CAGR of 11% and 14% over 2009 to 2012E respectively. On the basis of EV/EBITDA, the stock trades at 5.37 x for FY11E and 4.89 x for FY12E. Price to book value of the stock is expected to be at 1.46 x and 1.25 x respectively for FY11E and FY12E. We expect that the company will keep its growth story in the coming quarters also. At the current market price of Rs 517, the stock is trading at 9.34 x FY11E and 8.44 x FY12E respectively. We recommend ‘BUY’ in this particular scrip with a target price of Rs 595 for medium to long term investment,” says Firstcall Research report.

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From: http://www.moneycontrol.com/news/recommendations/buy-monnet-ispat-targetrs-595-firstcall-research_486147.html