Buy Finolex Industries, target of Rs 90: Angel

Angel Broking has maintained its buy rating on Finolex Industries with a target price of Rs 90 in its June 23, 2008 research report. "We are downgrading our FY2010E EV/EBITDA multiple for the stock form 6x to 5x owing to the volatility in the prices of petroleum-based products and reduce our EBITDA estimates from Rs 266 crore to Rs 213 crore. We continue to include the value of the 14.5% stake held by the company in Finolex Cables at 25% discount to the current market value of that stock."

"We have also downgraded our estimated value of the Pune land that the company plans to sell from Rs 500 crore to Rs 400 crore due to the cooling off in the real estate market. We maintain a Buy on the stock, with a SOTP Target Price of Rs 90," says Angel's research report.

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