Graphite India: Stability at the best - Anand Rathi

- Scale in global league with 98,000 tonnes per annum production capacity - ~65% production exported to 30 countries - strong product knowledge built since 1960.

- Strong operating margins driven by operational efficiency, productivity, technology, and access to low-cost sources of power.

- Integrated backwards and produces Calcined Petroleum Coke - key raw material in electrode manufacturing, Strong cash-flow generation, healthy balance sheet, high dividend yield - added attractiveness

- Initiate Buy with target price of Rs. 108 based on 6x EV/EBITDA on FY15e basis.

Source : Equity Bulls

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