Prabhudas Lilladher has maintained buy rating on ESS DEE Aluminium with target price of Rs 689, implying upside potential of 55%, in its May 28, 2008 report.”We expect the company to report 31% CAGR in net sales and 48% CAGR in net profit over FY08-10. We also expect its EBIDTA margin to improve from 27.9% in FY08 to 32.4% in FY10 due to the introduction of new products, capacity expansion and entry into FMCG segment. At the CMP of Rs443, the stock trades at 16.8x FY08 EPS of Rs26.4, 9.0x FY09E EPS of Rs49.4 and 7.7x FY10E EPS of Rs57.4.

We reiterate BUY rating on the stock with a price target of Rs689 (12x FY10 earnings) over the next 12 months giving a 55.7% upside from the current level” says Prabhudas Lilladher report.

Download ESS DEE Aluminum Report [Source: Prabhudas Lilladher]

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