Madras Cement
Recommendation: Buy
CMP = Rs 2388
Price target: Rs 3,250
- At the current market price of Rs2,388 the stock is discounting its F2007 earnings by 21x and its FY2008 earnings by 15.7x.
- The stock is trading at attractive valuations on EV/tonne basis with a value of US$116 for FY2007 and of US$109 for FY2008.
- At this price target the stock will be discounting its FY2008 EBIDTA by 11x and will be trading at EV/tonne of US$146.
McDowell & Company
Recommendation: Book Profit
CMP = Rs 878
- The stock has appreciated by 86% since then and achieved our price target of Rs750. We recommend investors to book profit.
