METAL PIPES SECTOR REPORT

AUTO UPDATE APRIL 2019

We initiate with a BUY for a price target of Rs. 2,306 representing an

IPO NOTE

IPO NOTE

IPO NOTE

IPO NOTE

We reiterate RBL Bank as a BUY with a Price Target of INR 820 (2.8x

India is rapidly migrating to an alternative fuel environment. Yet until relatively recently, despite being a critical clean fuel, natural gas was not given its due prominence as there was a clear lack of policy initiative. Under the Modi government, the push to this fuel segment has been fast tracked as is apparent in the time-bound rollout of the 9th and 10th round of auctions. The government is looking to increase the contribution of gas in the total energy mix from 6% to 22% by 2022. This presents significant visibility to the CGD growth story.

UNION BUDGET 201920

We initiate coverage with a BUY for a price target of Rs. 77

We initiate coverage with a BUY for a price target of Rs 349 representing an upside of 33% from the CMP of Rs.260 over the next 21 months.

In our opinion, GESCO is one of the best capital allocators in the industry. The proof of the pudding lies in the eating and GESCO has demonstrated uncommon alacrity in timing the shipping cycles.

We retain our buy on the stock with the revised DCF valuation price target of INR 1,245 which is an upside of 86% over the next 24 months.

IPO NOTE

IPO NOTE

IPO NOTE

We initiate coverage on PLNG with a BUY rating. Our DCF based valuation of Rs.321 per share (11x FY20 P/E) is 36% higher than the current market price of Rs.235 per share.

IPO NOTE

At the CMP of Rs.64, JSL is trading at an EV/EBITDA of 5.2 x FY19E. We initiate with a BUY on JSL with a target price of Rs.127 (FY21 EV/EBITDA of 5x), which represents an upside of 98.4% over 18 months.