Rain Commodities' (RCOL) -TP: INR89 Buy -Motilal oswal,

Please Share:: India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��

Buy Rain Commodities:: Target Price: Rs 49 :: Tata Securities

Please Share:: India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��


Good performance continues, maintain Buy
Rain Commodities Ltd (RCL) reported 4QCY11 results above our expectations,
with revenues of Rs16.2bn (our estimate was Rs15.4bn) and EBITDA of Rs4bn
(our estimate was Rs2.9bn). This was mainly led by higher-than-expected CPC
volumes and profitability. Cement segment reported a weak performance with
an EBITDA of Rs637/ton in 4QCY11.
Given the sustained improvement in CPC segment’s profitability and reduction in
net debt-to-equity ratio, current valuations are attractive. We introduce CY13
estimates for the company. The stock trades at a PER and EV/EBITDA of 2.7x
and 3.3x CY13 estimates respectively. We maintain a Buy rating with a target
price of Rs49.

Rain Commodities: Target Price: INR 71 ::SPA Securities

Please Share:: India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��


RCL came out with better than expected set of numbers for Q4CY11 on the back of superlative performance by Carbon
Products segment. While the topline was in line with our estimates at INR 1608 mn (up 38% YoY & 24% QoQ) led by 18% YoY
increase in CPC volumes, net profit exceeded our estimates to INR 1802 mn in Q4CY11 (despite a forex loss of INR 294 mn due
to USD denominated forex loan). Its plans of setting up 35 MW waste heat recovery plant by CY12 remains on track. The
company has completed 85% of the buyback program at an average price of INR 31/share till date. We introduce CY13 estimates
and maintain a BUY rating on the stock with a target price of INR 71/share.