Wednesday, 12 November 2008

Buy Ciba India, target Rs 250: LKP Shares

LKP Shares has recommended a buy rating on Ciba India in its report dated November 10, 2008. "We expect BASF SE to make an open offer to shareholders of Ciba India Ltd. as well, which should provide investors in Ciba India an exit opportunity at around Rs 250 per share. It must be noted that the BASF open offer for Ciba Holding AG was made at CHF 50 per share, which was a premium of 32% over the closing price on the date of announcement of the offer. Ciba Holding holds 69% in Ciba India, Institutions hold 8% and the balance 23% constitutes Public Holding. Ciba India is virtually debt-free and has cash equivalent of Rs 90 per share and a book value of Rs 280. We recommend a BUY on Ciba India with a six-month price target of Rs 250," says LKP Shares' report.

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Source: Moneycontrol

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