Emkay Global Financial Services has maintained `Buy` on Piramal Glass with a price target of Rs 155 as against the current market price (CMP) of Rs 115 in its report dated Feb. 1, 2012. The broking house gave the following rationale:
PGL reported yet another muted quarter on all counts primarily due to capacity relining and demand moderation in Mass as well as Premium C&P segment in USA. Demand in Brazil and Turkey has started reviving, which would aid growth in the mass C&P segment, while Europe market, which continues to be strong, would drive growth in premium C&P segment. SF&B segment continued its healthy growth momentum led by strong growth in Sri Lanka and healthy pick up in US market. The relined capacity in US this quarter is expected to largely cater to the SF&B segment, which in turn, would propel growth in SF&B segment. Majority of the capex has been incurred towards Greenfield expansion and capacity relining, which is expected to start meaningful contribution to revenues from Q1FY13E. We maintain our Buy rating on PGL with revised target price of Rs 155 a share, which translates into 5.5x FY13E EV/EBIDTA.
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