Buy Royal Orchid; target of Rs 108: Nirmal Bang

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Buy Royal Orchid; target of Rs 108: Nirmal Bang

Nirmal Bang is bullish Royal Orchid and has recommended buy rating on the stock with a target of Rs 108, in its December 31, 2009 research report.

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Nirmal Bang is bullish Royal Orchid and has recommended buy rating on the stock with a target of Rs 108, in its December 31, 2009 research report.

"At current market price of Rs 82 Royal Orchid is trading at EV/EBITDA of 12.0x and 8.0x of FY11E and FY12E EBITDA, respectively. We have valued the stock at 9.5x its FY12E EV/EBITDA (which is inline with its historical average and discount to its peer group). We expect ROHL's EBITDA to grow at a CAGR of 17.35% over FY09-FY12E. We hereby initiate coverage on ROHL Ltd. and recommend buy rating with a target price of Rs 108 (32% upside) in 15 months."

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To read the full report click on the attachment