sharekhan on sail

Outlook
At the current market price of Rs147, the company is
trading at a trailing twelve months (ttm) price/earnings
ratio of 9.6x and on enterprise value (EV)/sales and EV/
earnings before interest, depreciation, tax and
amortisation (EBIDTA) basis it is quoting at 1.6 x and
5.5x based on June 2007 ttm earnings respectively. In
view of the structural changes happening in the steel
industry and the company having an access to captive
iron ore mines, we expect that the company will be able
to post a good volume growth with increasing share of
high margin products, going forward.