Buy Plethico Pharma, target of Rs 475: SPA Securities

SPA Securities has recommended a buy rating on Plethico Pharmaceuticals with a 12-month target price of Rs 475 in its June 25, 2008 research report. "At the CMP of Rs 381.80, the stock is available at 8.9x and 7.4x its fully diluted earnings of Rs 42.92 & Rs 51.50 in CY08E & CY09E respectively. On EV/EBIDTA basis, the stock is valued at 3.9x in CY08E and 2.7x in CY09E. We initiate our coverage with “Buy” recommendation with 12-month target price of Rs 475 based on average of DCF (Rs 479 per share) and target price multiple of 11x of CY08E earnings (Rs 472 per share), with potential upside of 25%," says SPA Securities research report.

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