CD Equisearch is bullish on Orient Refractories has recommended buy rating on the stock with a target price of Rs 201 in its research report dated April 18, 2018.
CD Equisearch's research report on Orient Refractories
According to a report by MarketsandMarkets, global refractories market (worth $28.7 bn in 2016) is projected to register CAGR growth of 3.9% in five years ending 2022 to reach $36.17 bn, owing to rising demand of high performance refractories and increasing production of steel, cement and glass materials worldwide. With 3.5% CAGR growth in volume during the same period, its market size is estimated to grow to 56.83 mn tons by 2022 from 46.28 mn tons in FY16.
Outlook
Yet severe fluctuations in raw material prices and stressed assets of Indian steel industry would be major irritants. We recommend ‘buy’ rating on the stock with target price of Rs 201 (previous target Rs 157) based on 24x FY19e earnings.For all recommendations report, click here
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