Rain Commodities - Multibagger stock update

Rain Commodities:

Calcined Petroleum Coke (CPC) major Rain Commodities is under the radar of several funds after its recent inclusion in mid-cap index.According to brokers, it is witnessing sustained buying by funds like Swiss Finance Corporation and Morgan Stanley, among others. The interest has emerged after it reported a PAT of Rs 94 crore in this quarter. Going forward, this is expected to go up substantially as average realisation of CPC was $355 per tonne for the second quarter and may go up to over $550 per tonne in the third quarter as it has recently booked some orders at $700 per tonne.Further, the series of rate cuts in the US is likely to save around Rs 60-crore interest every year as interest cost alone, which would be utilised for putting up a co-gen power plant in the US.

According to analysts tracking the counter, the company is expected to report an EPS of nearly Rs 90-100 for Calendar Year 2008. Due to increasing consolidation and limited supplies, CPC may remain sellers market for next 4-5 years

Also Read:
Multibagger Recommendation by S.P. Tulsian: Rain Commodities