Compact Disc India
Research: HDFC Securities
Rating: Buy
CMP: Rs 76

We believe CDI is on a high growth trajectory and is gearing itself to tap the growing opportunities in the Indian animation industry. Tying up with some of the internationally renowned names of media industry, CDI is aggressively growing to create a name for itself.

The withdrawal of two proposals i.e. the placement of shares as well as plan of AIM listing getting deferred had negatively impacted the stock price. But we believe that at current price the worst has been discounted and the stock can witness appreciation from the current levels. The stock is quoting a PE of 1.9 times its FY09 (E) earnings. Risk bearing investors could take an exposure to the stock at the current price for the nearest target of Rs 93. However considering the past volatility in price, if the stock price moves below Rs 70, new investors could review their holding.