Kotak Securities puts buy rating on Sintex Industries
Kotak Securities has initiated coverage on Sintex Industries with a 'buy' rating and a price target of Rs 125, saying the company is poised to become a global player in the processed plastics segment.
By ET Bureau |
CMP: Rs 93.35
TARGET PRICE: Rs 125
Kotak Securities has initiated coverage on Sintex Industries with a ���buy��� rating and a price target of Rs 125, saying the company is poised to become a global player in the processed plastics segment.
���We believe current valuations more than price in risks arising out of slower revenue growth. The stock is currently trading at 2.9 times FY10 (estimated) EBITDA and 0.7 times FY09 (estimated) book value, which is near the lower end of the range it has traded in over the past five years,��� the Kotak note to clients said.
���We believe lower input prices will help maintain/improve near-term EBITDA margins. Sintex���s strong liquidity further reinforces its balance sheet strength,��� the note added.
TARGET PRICE: Rs 125
Kotak Securities has initiated coverage on Sintex Industries with a ���buy��� rating and a price target of Rs 125, saying the company is poised to become a global player in the processed plastics segment.
���We believe current valuations more than price in risks arising out of slower revenue growth. The stock is currently trading at 2.9 times FY10 (estimated) EBITDA and 0.7 times FY09 (estimated) book value, which is near the lower end of the range it has traded in over the past five years,��� the Kotak note to clients said.
���We believe lower input prices will help maintain/improve near-term EBITDA margins. Sintex���s strong liquidity further reinforces its balance sheet strength,��� the note added.
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