Saturday, August 9, 2008

Stock Idea: Usha Martin

PINC Research has maintained its buy rating on Usha Martin with a 12-month target price of Rs 135 in its August 8, 2008 research report. "Usha Martin Ltd. (UML) reported net sales of Rs 7 billion for Q1FY09, a YoY growth of 39% driven by sales volumes of value added products and overall buoyancy in realisations. The above factors also led to a 323bps expansion of OPM, as the company could sustain raw material cost advantage through its captive iron ore mines. Operating profit consequently rose to 1.5 billion (+62%). Net profits grew 73% to Rs 651 million."
"The stock trades at a P/E 6.2x, which we believe does not factor in the volume growth and the upcoming backward integration. We remain positive on the stock and reiterate our ‘BUY’ recommendation with a 12-month price target of Rs 135," says PINC's research report.


The information in this publication is provided by is intended for use for Readers & Traders . Every effort is made to provide accurate information, but cannot guarantee the accuracy of the information or of the market analysis. This is a newsletter and is for informational purposes only. It is not a solicitation or offer to buy or sell futures. There is a high risk of loss in trading futures. You should not trade with money that you cannot afford to lose. No representation is being made that any account will or is likely to achieve profits or losses similar to those discussed on this newsletter. The past performance of any trading system or methodology is not necessarily indicative of future results.

free counter