BUY Rallis Inida with a target price of Rs 190: Gargi Deb
We adopted a comparable valuation method to value Rallis based on Price-to-Earning (P/E) multiples
By ET Online | Updated:
Gargi Deb, Microsec Capital Ltd, talks about Rallis India Ltd
We adopted a comparable valuation method to value Rallis based on Price-to-Earning (P/E) multiples. Currently, Rallis is trading at 16.2x on its FY13 EPS (E) of INR10.04.
In the longer run, we expect the company continue to trade at a premium over the peer group average P/E based on its right strategic move and outperformance.
As a result, we assign the multiple of 19x and arrive at a target price of INR190 for the stock. Our target price translates a 17% upside over Rallis’ current stock price.
We adopted a comparable valuation method to value Rallis based on Price-to-Earning (P/E) multiples. Currently, Rallis is trading at 16.2x on its FY13 EPS (E) of INR10.04.
In the longer run, we expect the company continue to trade at a premium over the peer group average P/E based on its right strategic move and outperformance.
As a result, we assign the multiple of 19x and arrive at a target price of INR190 for the stock. Our target price translates a 17% upside over Rallis’ current stock price.
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