4108 Investors following Welspun India. Share this News with them.
0
Like this story, share it with millions of investors on M3
Buy Welspun India; tgt Rs 140: DSP ML
DSP Merrill Lynch research has recommended buy rating on Welspun India with a target of Rs 140. Research firm believes the company is making the right moves in a tough operating environment created by stronger Re, through its attempts to de-risk the business model and move up the value chain.
DSP Merrill Lynch has recommended buy rating on Welspun India in its December 12, 2007 report. "We have raised our PO on Welspun India to Rs 140 (Rs 93 earlier) by rolling over to FY09 and pegging it at 7.5x EV/E, which is in-line with the historic trend. We believe the company is making the right moves in a tough operating environment created by stronger Re, through its attempts to de-risk the business model and move up the value chain. Valuations remain attractive at 9.5x FY09 PE. Welspun's earnings are highly sensitive to appreciating Re. However, given that Welspun accounts for almost 10% of total US towel imports, does give the company some pricing power. We have tweaked our Re assumptions in line with our Economist's forecast and consequently our earnings. We now expect EPS to grow avg. 30% over FY08-10E. Maintain Buy on attractive valuations, " according to DSP Merrill Lynch.
Disclaimer: The views and investment tips expressed by investment experts on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decision.
