Parag Parikh Financial Advisory Services has recommended investors to book profits in Lakshmi Energy and Foods. The research firm has valued the company at Rs 286 based on 8.5x FY10E earnings.
Parag Parikh Financial Advisory Services has recommended investors to book profits in Lakshmi Energy and Foods . "We attribute the current share price rally to a clear re-rating in the scrip. Should the valuation multiple sustain, we could see the share price rally upto Rs 336, based on 10x FY10E EPS (12% upside). We had valued the company at Rs 286 based on 8.5x FY10E earnings. Given the investments in paddy inventory, we feel that the cash flow based valuation may limit any further multiple re-rating in the foreseeable future. Our call is to Book Profits now," says Parag Parikh Financial Advisory Services' research report.
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