Buy Karuturi Global, tgt Rs 35: Religare

Religare research report has maintained buy rating on Karuturi Global  with target price of Rs 35 in its June 19 report. "International cut flower market valued at USD 64 billion; expected to grow at 10–12% CAGR. Roses command largest share of industry turnover at 70% with Europe being the biggest cut flower market, accounting for 50% of global consumption. Cut flower cultivation shifting to developing countries like Kenya, Ethiopia and India due to favourable cost and climate conditions. Karuturi Global is the world's largest producer of roses, cultivating 585 million stems per annum. Boasts over a decade of experience in rose cultivation with operations in Ethiopia, Kenya and India. Strategic foothold in Ethiopia and Kenya would enable the company to cater to burgeoning demand from Europe and augment its global market share.  At the current level the stock is quoting at 7.4x and 5.5x its FY09E and FY10E earnings respectively. We have assigned the stock a P/E multiple of 8x as we expect a re-rating due to its premium positioning in the industry as well as its recent foray into food processing. We have a target price of Rs 35. Buy" according to Religare report.  

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