Indian equities have been mostly rising since the last one-and-half-month on the back of optimism over Q4 results with the headline indices Sensex and Nifty nearing their all-time high levels. But the recent outcome of Karnataka Elections 2018 coupled with the negative global cues have brought down the upsurge as Modi-led BJP didn’t manage to clinch the halfway mark. The benchmark Sensex had risen nearly 9% to 35,500 from a level of 32,600 from 23 March up until 15 May 2018 while in the span of last one year, Sensex has surged more than 16%. In the corresponding time, many shares have outperformed the key equity indices while some have doubled the money even.
Shares of chemical maker Rain Industries have doubled the investors’ money in the last year. The stock of Rain Industries has advanced 114% to Rs 234 from a share price level of Rs 109 on NSE. The domestic research and brokerage firm Motilal Oswal Securities has maintained ‘buy’ rating on the stock of Rain Industries. Motilal Oswal Securities has given a target price of Rs 426 which implies an upside of 82% from the current market price.
Rain Industries’ EBITDA rose 50% to Rs 6.6 billion in the first quarter of the current year 2018 but missed the estimate of Rs 7.7 billion due to quarter on quarter decline in CPC shipments, as against our expectation of growth, Motilal Oswal Securities said in a report. We have toned down CPC volumes and cut margins, leading to a 7% cut in EBITDA and an 11% cut in PAT. We lower target price by 11% to Rs 426 per share, Motilal Oswal Securities said further.
Rain Industries shares are categorised in the ‘A’ group on BSE and are a component of S&P BSE 500 and Nifty 500 indices. Rain Industries commands a market capitalisation of Rs 7,852 crore on the basis of a share price of Rs 233.35 on BSE.
Disclaimer: Views and recommendations given in this section are the brokerage firms’ own and do not represent those of www.financialexpress.com. Please consult your financial adviser before taking any position in the stock/s mentioned.