Accumulate Balmer Lawrie, target of Rs 675: Hedge Equities

ALSO READ See previous views by Hedge Equities See what other Experts & Brokerages are saying about Balmer Lawrie See messages about Balmer Lawrie Balmer Lawrie BSE | NSE 10/02/12 Are Mutual Funds betting on Balmer Lawrie?

Hedge Equities has come out with a research report on Balmer Lawrie . The research firm has recommend accumulation of the stock with targets of Rs 675 and Rs 740 for a 1-2 year time horizon.

The report says, "The firm is a zero debt firm, having eradicated all debt in FY09 (Debt equity ratio was reduced from 0.83 in FY04 to 0 in FY09). Not having to make any interest payments will serve the company well in the near future and it also makes any future acquisitions for the company much easier. Even though there is likely to be a decline in sales for FY10 (due to a slow recovery in tourism and foreign trade sector which are the main growth drivers), the performance in FY11 is expected to pick up as the company is well positioned in each segment and it will also be aided by macro-economic conditions that are conducive for growth and expansion. Based on the FY11E earnings and FY12E earnings we recommend accumulation of the stock with targets of Rs 675 and Rs 740 for a 1-2 year time horizon."

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To read the full report click on the attachment