ICICI Direct has given Buy recommendation for Vardhman Special Steel with a target price of Rs. 300 in its research report issued on Jan 31, 2021

ICICI Direct’s research report on Vardhman Special Steel

Vardhman Special Steel (VSSL) is among India’s leading steel bar producers for automotive applications. It has specialised product offerings, which include steel bars, rods & bright bars of various categories of special & alloy steel. VSSL, incorporated in May 2010, is headquartered in Ludhiana, Punjab In August 2019, VSSL had entered into a strategic alliance with Aichi Steel Corporation (ASC) Japan, the main material producer for Toyota Group wherein ASC had participated in equity and had entered into a Technical Assistance Agreement

Outlook

We maintain our BUY rating on the stock We value VSSL at Rs 300 i.e. 7x FY23E EV/EBITDA

 

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