SKP Securities has recommended a buy rating on Everest Kanto Cylinder (EKC) with a target of Rs 229 in its December 1, 2008 research report. "EKC has planned a capacity expansion of 2,05,000 cylinders including the capacity for 5000 jumbo cylinders, industrial cylinders at Gandhidham with an estimated capital expenditure of Rs 650 million. EKC has made an aggressive capital expenditure plan in China, through EKC Industries (Tianjin) Co. Ltd, the company’s wholly owned subsidiary in China."
"At the current market price of Rs 140, the stock is trading at a P/E of 15.05x and 12.32x of FY09E and FY10E earnings of Rs 13.37 and Rs 16.34 respectively. We recommend BUY rating on the stock with a target price of Rs 229/- (63% upside) in 18 months implying a P/E multiple of 14x of FY10E earnings," says SKP Securities' research report.
Source: Moneycontrol.com
