Gujarat Mineral Development Corporation shares rallied 10 percent in morning on Tuesday after brokerage Edelweiss Securities initiated coverage with a buy call on the stock, citing strong volumes and attractive valuations.
The stock was quoting at Rs 92.45, up Rs 6.70, or 7.81 percent on the BSE, at 09:58 hours IST. It lost nearly 30 percent in last one year.
The research house has set a price target for the stock at Rs 105 apiece, implying a 22 percent potential upside from March 11 levels.
The conviction is underpinned by two Vs i.e. volume & valuation, said the brokerage which sees imminent volume uptick post production ramp-up at new mines, despite stagnant prices.
On valuation front, it believes the stock is trading at the lowest end of its 8-year EV/EBITDA band.
Edelweiss expects GMDC to surpass the Rs 5,000 crore (3 percent CAGR) EBITDA barrier by FY21.
We provide you sure shot Commodity & Equity Market Tips, Intraday tips, share market tips, Mcx bullion tips, Mcx tips, Crude tips, Stock tips, Future and Cash tips with Technical & Fundamental Research.
Visit: www.ripplesadvisory.com
Contact us @ +91-9644405056
Source: Moneycontrol
No comments:
Post a Comment