Edelweiss expects GMDC to surpass the Rs 5,000 crore (3 percent CAGR) EBITDA barrier by FY21.
Gujarat Mineral Development Corporation shares rallied 10 percent in morning on Tuesday after brokerage Edelweiss Securities initiated coverage with a buy call on the stock, citing strong volumes and attractive valuations.
The stock was quoting at Rs 92.45, up Rs 6.70, or 7.81 percent on the BSE, at 09:58 hours IST. It lost nearly 30 percent in last one year.
The research house has set a price target for the stock at Rs 105 apiece, implying a 22 percent potential upside from March 11 levels.
The conviction is underpinned by two Vs i.e. volume & valuation, said the brokerage which sees imminent volume uptick post production ramp-up at new mines, despite stagnant prices.
On valuation front, it believes the stock is trading at the lowest end of its 8-year EV/EBITDA band.
Edelweiss expects GMDC to surpass the Rs 5,000 crore (3 percent CAGR) EBITDA barrier by FY21.
Disclaimer: The above report is compiled from information available on public platforms. Moneycontrol advises users to check with certified experts before taking any investment decisions.
