September 10, 2008

LKP Shares has recommended to accumulate Clariant Chemicals at declines, in its report dated September 8, 2008.

"Although commencement of production by China post Olympics remains an issue, we believe that Clariant Chemicals India Ltd trading at a valuation of 7.5xCY09E is a good investment bet despite earnings projected to grow at 14% over the next three years given the 33% ROCE of the business, dividend yield of 4.5% and the fact that the Dyes facility at Kolshet in Thane which has been shifted to Roha thereby leaving options for unlocking real estate value which itself in our view is Rs 150 per share. We recommend long-term investors to accumulate the stock at declines", says the report.