Morganite Crucible CMP 234 : a MNC, is recommended for sizeable capital appreciation given its mind-boggling results for FY10. MCL, earlier known as Greaves Morganite Silicon Carbide Crucibles, started operations in 1986 at Aurangabad, Maharashtra, in collaboration with Morganite, UK, one of the largest manufacturers of Resin Bonded Silicon Carbide Crucibles in the world. Its crucibles cater to the non-ferrous metal industry.
MCIL’s key growth opportunities are driven by multiple end-user markets. These include non-ferrous castings for the automotive, marine and rail markets and the recycling and refining of precious metals from mining projects, the production of pure aluminium for electronic applications.
During FY11, sales are expected to rise by 40% to Rs.75 cr. and net profit by 25% to Rs.8.3 cr., which would give an EPS of Rs.35. At the current market price of Rs.234, the share is trading at a P/E of 7.2 on its FY10 earnings and 4.9 times its FY11 projected earnings. Applying a reasonable P/E of 10 will take its share price to Rs.350 in the medium-to-long term, which would fetch a gain of over 100%. The 52-week high/low of the share has been Rs.234/41.
ALREADY recommended at 180 levels..KEEP UR EYES on it..rush ur mails to sokhitrading@gmail.com
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