Wednesday, 29 October 2008

Buy Jyothy Labs, target of Rs 300: LKP Shares

LKP Shares has recommended a buy rating on Jyothy Laboratories with a one-year price target of Rs 300 in its October 29, 2008 research report. "With the Sensex itself trading at 10x we believe that there is a compelling reason to buy JLL which is trading at 6x with a dividend yield of 4% and above all it is a debt free company (cash per share of Rs 65) which came out with its IPO a year back in November 2007 at Rs 690 (Rs 5 paid up) purely to provide an exit to private equity investors and did not collect any funds for itself. JLL has corrected to Rs 215 now from its peak of Rs 965 in early January 2008 and at CMP of Rs 215 we believe that it is an attractive investment bet for investors with a one-year price target of Rs 300, which is a 40% upside from current levels," says LKP Shares' research report.

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Source: Moneycontrol

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