Nirmal Bang, one of the leading equity research-cum-broking house, has recommended a buy on Everest Kanto Cylinder Ltd with a target of Rs 225 in the short term.

The report further stated that, if the counter is successful to breach Rs 227, then it will hit a target of Rs 260.

In addition, the firm has suggested a support level for the scrip at Rs 180.

Today (Sep 08), the shares of the company opened at Rs 206.50 on the Bombay Stock Exchange (BSE). Current EPS and P/E of the stock stood at 3.46 & 59.32 respectively. The share price has seen a 52-week high of Rs 299.50 and a low of Rs 84 on BSE.

Developer & manufacturer of industrial & CNG Cylinders, Everest Kanto Cylinder (EKC) is poised to act in response to the rising OEM automobile market in China and anticipates beginning selling by October

EKC’s CFO J Sivakumar made this announcement.

EKC’s China facility reportedly has a capacity to produce 200,000 CNG cylinders and an initial capacity to make 3,000 jumbo cylinders per annum (cpa).

Presentltly, EKC exports from its Chinese plant to India and Middle East.

Everest Kanto Cylinder posted a decline of 52.13% in the consolidated net profit for the three month period ended June 30, 2009.

The company during the quarter posted a consolidated profit of Rs 167.60 million as against of Rs 350.10 million for the quarter ended June 30, 2009.

On a standalone basis, EKC reported a profit of Rs 102.60 million, a decline of 18.18% over the prior year period. In the same period, total income of the company was at Rs 673.70 million, a decline of 29.79% over the prior year period.