6 November, 2010
These are some of the chosen and safe recommendations of our experts for the mid term investment in the Stock market.
Graphite India
Market Price: Rs 93.70
Target Price: Rs 115
Graphite India, the fifth largest graphite manufacturing company in the world, is looking at capacity expansion by 20,000 MT in the next two years. We assign a P/E multiple of 9x for Graphite on its FY12E EPS of Rs 12.65 and arrive at a target price of Rs 115.
JK Lakshmi Cement
Market Price: Rs 64.15
Target Price: Rs 74
JK Lakshmi Cement is a North Indian cement player catering to markets in north and west India. The company is likely to benefit from the expected improvement in business environment post Q2-Q3 FY2011 and capacity expansion. The company’s PE at 3.22x of FY2010 EPS is attractive from an investment perspective.
Rallis
Market Price: Rs 1435.95
Target Price: Rs 1600
Rallis is a leading agrochemical manufacturing company of the Tata Group. Due to its ability to launch new products and its plans for more alliance in contract manufacturing, we assign a P/E multiple of 16x on its FY12E EPS of Rs 100 and arrive at a target price of Rs 1,600
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