Buy Vesuvius India, target Rs 1500: Centrum Broking

Centrum Broking has a buy call on Vesuvius India Ltd. with a target price of Rs 1500. The current market price of Vesuvius India Ltd. is Rs 1300. The time period given by the brokerage is a year when Vesuvius India Ltd. price can reach defined target. .

Vesuvius India Ltd., incorporated in 1991, is a mid-cap company with a market cap of Rs 2644.17 crore.

Investment rationale by Centrum
We maintain our Buy rating on Vesuvius India Ltd (VIL) with TP of Rs1500. Q1CY18 performance was below expectations as growth remained subdued due to lower exports led by lumpiness in sales to group entities. We remain positive on VIL led by i) positive long term growth outlook in the wake of stressed steel assets likely to get acquired through NCLT by stronger players (who are key clients of VIL), ii) entry into new segments and value addition from local R&D centre at Vizag (commissioned in CY17) and ii) enough scope of growth from existing capacity coupled with productivity improvements.