LUCKY cement likely to post PAT of Rs3,703 mn (EPS: 11.45) for FY11, up by (+18% YoY) versus PAT of Rs3,137 mn (EPS: 9.70) in corresponding period last year. Growth in profitability to stem from higher local / export cement prices by (+38.38% / +20.40% YoY) respectively, consequently topline would propel by (+19.43% YoY).
We recommend ‘BUY’ for the stock currently trading at P/E 5.97x - FY11E, our target price is Rs85.76/ share, offers upside of 25.38%.
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