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Buy Sical Logistics, tgt Rs 155 : Karvy
Karvy research has maintained buy rating on Sical Logistics with target price of Rs 155. At current market price of Rs 100, the stock is trading at 10.5x FY08 and 8.8x FY09 earnings
Karvy research has maintained buy rating on Sical Logistics with target price of Rs 155 in its July 02, 2008 report. "Sical reported the revenue decline of 51.7% YoY (QoQ decrease of 12.3%) to Rs 1.33 billion. The company has sold non logistics business i.e refractories, agri-bio products, flexible shafts, palm oil in H1FY08. The company completed the de-merger of its non logistics business into a wholly owned subsidiary, Sicagen India ltd after receiving High Court sanction in January 2008.At current market price of Rs 100, the stock is trading at 10.5x FY08 and 8.8x FY09 earnings. Based on EV/EBIDTA it is trading at 10.6x FY08 and 8.3x FY09. We expect consolidated net profit to increase at a CAGR of 16.2% to Rs 510 mn in FY10 considering business restructuring and growth in offshore business. We are revising our valuation from 14xFY09 to 12xFY10 earnings with target price of Rs 155 (pre de-merger Rs 260)" according to Karvy report.
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