Tuesday 4 November 2008

Buy EID Parry, target of Rs 230: Karvy

Karvy Stock Broking has maintained its buy rating on EID Parry (India) with a target of Rs 230 in its November 4, 2008 research report. "For Q2FY09, EID Parry (I) reported the revenue increase of 55.7% YoY (QoQ increase of 16.4%) to Rs 2.51 billion due to higher sugar sales. The company has reported profit of Rs 117.8 million at PBIT in Q2FY09 as compared to loss of Re 347.7 in Q2FY08."

"We expect the revenue to increase at a CAGR of 22% to Rs 9.7 billion in FY10. We expect the profit of Rs 333 million in FY09 and Rs 691 million in FY10. We maintain sugar business valuation at EV/ Ton of Rs 0.35 million to FY09 capacity. Considering the addition of cash Rs 81 per share from sale of stake in Sanitaryware business, we are valuing sugar business at Rs 149. The valuation from 69% stake in Coromandal fertilizer is maintained to Rs 81 per share. We maintain our valuation based on sum of parts with target price Rs 230 with BUY rating," says Karvy Stock Broking's research report.

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Source: Moneycontrol

1 comment:

  1. DEAR SIR,
    REGARDING YOUR ABOVE COMMENT ON EID PARRY WE WOULD LIKE TO BRING TO YOUR NOTICE THAT COROMANDEL HAS ALREADY POSTED A NET PROFIT OF
    RS 375 CR FOR HI 09 WITH AN EPS OF 26.7 CONSERVATIVELY WE CAN ASUME FULL YEAR EPS CLOSE TO RS 40/- .TARGET PRICE OF CORO SHOULD BE MINIMUM OF RS 200/- TAKING A P.E OF 5.

    EID HOLDS ALMOST ONE SHARE OF CORO OF EVERY OUTSTANDING SHARE OF EID.

    YOUR TARGET PRICE THEREFORE ONLY ACCOUNTS FOR THE VALUE OF ITS INVESTMENT IN CORO.

    SUGAR DIVISION , POWER DIVISION, DISTILERY DIV. COMES ALMOST FREE.

    Not to mention the upcomming 100% EOU 600000 tonnes sugar refinery due to commence production soon.

    Added bonus would be coro's on going 0.6 million tonnes expansion programme taking it's overall capacity to 3 million tonnes.

    YOU WOULD BE HAVING A CONSOLIDATED BALANCE SHEET
    OF US$ 2 BN. ON AN EQUITY BASE OF 8.9 CR SHARES.

    At Rs 230/- per share the company would be valued at approx. Rs. 2000/- cr.

    Pls advice wether your target of Rs. 230/- is justified or we could be seriously looking at close to Rs. 600/-

    CHEERS

    PJVA

    ReplyDelete

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