Buy Elgi Equipments; target of Rs 150: Firstcall

“At the current market price of Rs 121.85, Elgi Equipments  is trading at 13.90 x FY11E and 12.24 x FY12E respectively. Price to Book Value of the stock is expected to be at 2.79 x and 2.27 x respectively for FY11E and FY12E.  Earning per share (EPS) of the company for the earnings for FY11E and FY12E is seen at Rs 8.77 and Rs 9.96 respectively. The company is exploring various organic growth opportunities by developing new products to meet market needs. We expect that the company will keep its growth story in the coming quarters also. We recommend buy in this particular scrip with a target price of Rs 150 for medium to long term investment,” says Firstcall India Equity Advisors research report.

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