Rain Industries shares hit a life-time high of Rs 286, rising 9.2 percent intraday Thursday after research house Motilal Oswal has initiated coverage on the stock with a buy rating, citing likely strong earnings growth and reasonable valuations.
The brokerage firm set a target price for the stock at Rs 362 per share, implying a potential upside of 33 percent from Wednesday’s closing price.
“Although the stock has got re-rated, valuations still appear attractive. We value the stock at Rs 362 based on 6.5x EV/EBITDA of CY19, and initiate coverage with a Buy rating,” Motilal Oswal said in its report.
After trading at low single digit PE for very long period, Rain has finally got re-rated on visibility of margin expansion and growth d
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