Sharekhan has recommended a buy rating on Opto Circuits India with a price target of Rs 460 in its May 13, 2008 research report. "Opto Circuits India's (Opto) non-invasive business is expected to grow at a compounded annual growth rate (CAGR) of 39.5% over FY2007-10E to Rs 550.7 crore on the back of rising demand for its sensors and patient monitoring systems, coupled with an increasing market penetration and innovative new launches. Opto has recently completed its USD 70 million acquisition of Criticre Systems (Criticare), a US-based publicly listed company specialising in vital signs and gas monitoring instruments."

"Opto is trading at attractive valuations of 16.9x FY2009E fully diluted earnings and 11.3x FY2010E fully diluted earnings. Hence, we initiate coverage on Opto with a Buy recommendation and a price target of Rs 460. Our current estimates do not incorporate the Criticare acquisition, which could yield incremental earnings of Rs 1.8 per share in FY2010E, implying an upside of Rs 28-30 per share to our target price," says Sharekhan's research report.

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