VESUVIUS INDIA

I have recommended a BUY on this company @ Rs.251/- on April 8 ,2010 .Currently it is quoting around Rs.371/- .Company is continuing its steady performance in its top line and bottom line and it is expected to show the same trend in the future.Recommending a HOLD at CMP

Old Report is re produced below
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VESUVIUS INDIA - A WORLD CLASS COMPANY

Vesuvius India is a part of U K based COOKSON group and one of the largest manufacturer of Refractories in India .In 2008 Cookson aquires foseco hence
two companies (Vesuvius India and Foseco India) are operating in India under the same parent. But the product line of these two companies are different and
are not competing each other. Vesuvius India makes high-end refractory products,flow control systems and services.These products are used by steel manufacturers using the continuous casting process for manufacturing steel.
Since most of the steel producers have switched to this technology company’s products are in good demand and the increase in steel production due to the revival in core sector will help the company a lot in future.Cement,glass,foundry and
petrochemical industries are also using company’s products. Company’s main plants are located in Kolkatta and visakapatanam. Strength of parent and its leadership position in refractory products with strong R&;D is expected to help the company
to add more products to its portfolio.Company has posted a turnover of Rs.364 crore and a net profit of 37 crore last year.company’s year ending is in December .Next financial year Vesuvius is expected to perform even better mainly because
of the improvement in steel production where its products are used.Vesuvius is an excellent MNC company available at a P/E of just 13 which is at the lower end for a
company like this.CMP is Rs.251/-