Angel Broking has maintained its buy rating on Gwalior Chemical Industries with a target price of Rs 107. During 4QFY2008, Gwalior Chemical Industries (GCIL) recorded 48.3% yoy jump in revenues to Rs 85.7 crore (Rs 57.8 crore), which was better than research firm's expectation.
"GCIL has been able to pass on the steep increase in the raw material prices to its customers. Hence, we expect marginal expansion in OPMs FY2009 onwards. We believe the company will be able to deliver a consistent 25-30% growth in Earnings over the next couple of years and hence remain positive over its growth prospects. The stock is currently available at attractive valuations of 3.9x FY2010E EPS of Rs 19.5 and FY2010E P/BV of 0.7x. We maintain a Buy, with a target price of Rs 107," says Angel's research report.
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