Net Profit of Vesuvius India in Q4 grows to Rs 129.40 m.

Dec. 31, 2010 - "Vesuvius is a world leader in the design, engineering, manufacture and delivery of refractory products, systems and services for high-technology industrial applications. The company products are designed and conceived by material science specialists supported by metallurgists and fluiddynamic experts using state-of-the-art technologies. Vesuvius has built its business model on proximity to its customers. With 70 plants worldwide, Vesuvius supplies products and services anywhere at any time."
"During the quarter, the company has reported Net Profit increased to Rs 129.40 million from Rs 105.30 million in previous year same quarter. Net Sales and PAT of the company are expected to grow at a CAGR of 12% and 21% over 2008 to 2011E respectively. Price to Book Value of the stock is expected to be at 2.58 x and 2.14 x respectively for CY10E and CY11E. Earning per share (EPS) of the company for the earnings for CY10E and CY11E is seen at Rs 24.24 and Rs 26.86 respectively. On the basis of EV/EBITDA, the stock trades at 7.80 x for CY10E and 7.03 x for CY11E. At the current market price of Rs 334, the stock is trading at 13.78 x CY10E and 12.43 x CY11E respectively. We expect that the company will keep its growth story in the coming quarters also. We recommend 'BUY' in this particular scrip with a target price of Rs 384 for medium to long term investment," according to a newly published Research report.