Brics PCG recommends to 'Buy' Mangalam Cement at current levels for a price target of Rs 303.Mangalam Cement (MCL), a B.K. Birla group company was incorporated in 1976. It has an installed capacity of 1.5 mn MTPA with its plant located at Morak in Rajasthan.The company sells cement in north India. MCL was referred to BIFR and subsequently a revival package was structured. The company is all set to wipe off its accumulated losses in the current financial year and record improved performance as a result of the uptrend in the cement cycle.Brics have valued the stock at Rs 303 on the basis of an EV/ Ton of $100 and we initiate coverage on the stock with a 'Buy' recommendation. 'Buy' Venus RemediesBrics PCG recommends to 'Buy' Venus Remedies at current levels for a price target of Rs 602.Venus Remedies has received a bulk export order for supply of Anti-Cancer medicines to Ukrainian government. The contract would be executed over the next one year and the company has already received the advance against the first consignment to be despatched. Brics expect Venus Remedies to show impressive Q2FY07 results backed by the incremental growth from this order as well as the launch of the patented FDC of Cefepime and amikacin in the domestic market.At the current market price of Rs 353, the stock is trading at 13.3x FY07E EPS of Rs 26.5 and 9x FY08E EPS of Rs 39.1. With a return on equity of 48.7% and an estimated growth in earnings of about 68% for FY07, they believe the stock is highly undervalued at present.
