Fair price for Manaksia around Rs 200

Nifty BSE | NSE 25/05/12 Are Mutual Funds betting on Nifty?

CNBC-TV18's stocks editor, Udayan Mukherjee -Manaksia is an okay company. They are in a good space, particularly in that environment where FMCG is coming back into favour, a fairly significant supply to the space, makes crown, metal containers. It is in basically that hard packaging space and has got an international exposure albeit to markets like Nigeria, not exactly western Europe.

It's not overpriced, Rs 160 was the issue price and got subscribed about 9-10 times. It should go on to do Rs 20 earnings at the end of this year, which means about just 8-times on the IPO price. It should support couple of Rs 100 quite easily because that would be trading at 10-times one-year forward earnings FY09 that's not expensive, stocks in the packaging space do get that kind of valuation.

So Rs 200 looks like a fair price, which means they left about 25% on the table and that should be achieved. Beyond that I don't know because there are not too many peers exactly for this kind of a play. But it looks like that Rs 200 could be a median price. Its not a bad company but not the kind of stock, which would set the screen on fire.