Analysts'Picks: JSW Steel
Kotak Securities has recommended a “buy” on OCIL as it believes that strong global distribution network, expanded product portfolio and increasing outsourcing opportunities from global majors would drive company’s growth.
By ET Bureau |
JSW Steel
cmp: Rs 336.95
target price: Rs 463
Kotak Securities has recommended a ���buy��� on OCIL as it believes that strong global distribution network, expanded product portfolio and increasing outsourcing opportunities from global majors would drive company���s growth.
���We expect 56.7% and 43.7% compounded growth in revenue and net profit, respectively over the next two years. We estimate an earnings per share of Rs 20.2 in FY09 and Rs 29 in FY10.���
For FY10, expected overall revenue growth is 41.1% to Rs 11.49 billion while net profit is expected to grow at 43.9% at Rs 2.73 billion, the note said. ���The key growth driver for topline would likely be the stents business which is expected to grow at about 80%. The stock will be valued at 15.9x FY10 price to earning multiple and 14.9 times FY10 EV/EBIDTA,��� the note added.
target price: Rs 463
Kotak Securities has recommended a ���buy��� on OCIL as it believes that strong global distribution network, expanded product portfolio and increasing outsourcing opportunities from global majors would drive company���s growth.
���We expect 56.7% and 43.7% compounded growth in revenue and net profit, respectively over the next two years. We estimate an earnings per share of Rs 20.2 in FY09 and Rs 29 in FY10.���
For FY10, expected overall revenue growth is 41.1% to Rs 11.49 billion while net profit is expected to grow at 43.9% at Rs 2.73 billion, the note said. ���The key growth driver for topline would likely be the stents business which is expected to grow at about 80%. The stock will be valued at 15.9x FY10 price to earning multiple and 14.9 times FY10 EV/EBIDTA,��� the note added.
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