Buy Orient Ceramics - Fairwealth Securities

Fairwealth Securities is bullish on Orient Ceramics and Industries and has recommended buy rating on the stock with a target of Rs 130 in its September 6, 2010 research report.

"Orient Ceramics and Industries (OCIL) are looking forward to invest Rs 100 crore in expanding manufacturing capacity for green field project in Andhra Pradesh and also for joint venture agreement. The company's management is confident about its earnings growth on account of volume growth, better realisations and emphasised high margin product mix. The export volumes are expected to increase manifold as OCIL has grown its presence across many nations worldwide. OCIL is eyeing on one lakh sq ft of retail area via company owned and operated showrooms and opening of new franchisees including shop-in- shop stores."

"At current market price of Rs 92.25, the stock is available at P/E of 8.49, and P/E of 6.81x of its FY11, and P/E of 5.56x of FY12 earnings. Fairwealth Research Desk recommend BUY with target price of Rs 130, given that company's future shows potential," says Fairwealth Securities research report.

Source : Equity Bulls

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