G Chokkalingam, Founder & Managing Director of Equinomics Research & Advisory is of the view that Albert David may go beyond Rs 500 with the stock available only at 10 PE at current year earnings.
"Normally small pharma companies are available at 2-5 times; enterprise value to sales whereas this is available at 30 percent discount to sales. So, I firmly believe that at minimum it can give Rs 440-450 in the short to medium term. In the long term, it can even go beyond Rs 500," he said.
"Financially, it is doing well, but we saw this morning data point of domestic formulation growing on a single digit. So, this company is also not able to grow in a big way. In terms of valuations, you have lot comfort. Rarely there are any good quality company with a strong balance sheet available near single digit enterprise value at substantial discount to sales. It is also giving good dividend. They also export to around 35 countries. It is a small company but it has a good profile."