Sarda Energy and Minerals - 3QFY2013 Result Review - Angel Broking

Sarda Energy and Minerals (CMP: Rs.128, TP: Rs.153, Upside: 20%)

Sarda Energy and Minerals (SEML) reported healthy 3QFY2013 numbers. The net sales grew by 29.9% yoy to Rs.370cr mainly driven by healthy performance from steel business (+52.5% yoy to Rs.275cr). The EBITDA growth was however subdued at 10.7% yoy to Rs.71cr due to higher raw material costs and other expenses. Interest costs increased by 23.4% yoy to Rs.18cr while other income declined by 59.4% yoy to Rs.4cr. As a result, the net profit of the company declined 3.3% yoy to Rs.27cr.

We maintain our Buy rating on the stock with a target price of Rs.153.

Source : Equity Bulls

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