Religare - Mangalam Cement

Religare believes Mangalam Cement trades at a 1-year forward P/E multiple of 4.3x and on EV/EBITDA at 2.9x FY08E and 1.8x FY09E. At US$60 per ton FY08E capacity it is trading at a
discount of 40% to the replacement cost of US$ 100 per ton. They maintain a target price of Rs214 which implies a 2-year forward earnings multiple of 5x