Buy Texmo Pipes; target of Rs 70: Sunidhi Securities

“Texmo Pipes and Products (TPPL) has developed ‘Texmo’ brand in the market due to its highest quality products through process excellence by promoting efficiencies and productivity. The wide range of polymer pipes manufactured by it meet the requirements of various applications in the country in the present age of plastic culture. Due to use of such polymer pipe, which is an edge over the use of metal pipes i.e. PVC pipes lead to minimize the cost factor by way of overall use, such as installation, transportation, no risk of health hazard etc. The demand therefore, is on the increase TPPL is likely to post an EPS of Rs 9 in FY11 and Rs 12 in FY12. At the CMP of Rs 50, the share is trading at a P/E of 5.6x on FY11E and 4.2x on FY12E. We recommend BUY with a target of Rs 70 in the medium term,” says Sunidhi Securities research report.

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