Rain Commodities is said to be on the radar of a domestic brokerage firm who seeks to ‘invest smartly’. The firm is said to be aggresively asking investors to buy heavily into the scrip. The firm seems to be creating a buzz that Calcined Petroleum Coke (Rain is the world’s largest producer of CPC) is increasingly becoming a sellers’ market, as no new capacities are coming up. It has recently contracted CPC at over $500 per tonne to aluminium majors in contrast to about $250 last year. As a result, its EBIDTA margins have increased significantly up to $100 per tonne. It has a total capacity of about 2.5 million tonne.

The word on the street is that the company is being approached by various funds after it posted its result. The company came out with an EPS of over Rs 16 which translates into an annualised EPS of about Rs 65. Analysts maintain that the stock is trading at less than a PE multiple of Rs 4.

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