Diamond Power has target of Rs 350: Vikas Sethi

Sethi told CNBC-TV18, "Diamond Power is a midcap company, which is into manufacturing of power cables and has recently forayed into manufacture of transmission towers. The company reported its June quarter results recently, the results were excellent. The net profits of the company have gone up from Rs 13 crore odd to Rs 31 crore, which was a growth of 125% and sales have also gone up from Rs 170 crore to Rs 381 crore."

He further added, "This stock made a recent 52 week high of around Rs 240 odd. I think it has corrected a little bit since then. But I see a lot of upside even from these levels because of strong industrial demand for its products and strong order book of around Rs 1100 crore and as I mentioned, its recent foray into manufacture of transmission towers. To add to it all, it is currently available at an attractive valuation of around 10 time FY10 EPS of Rs 22. I see this company doing an EPS in excess of Rs 30 by FY11, which means it would again be attractive at less than 8 times FY11 earnings. And my target would Rs 350 in about 12 months."

Disclosure: It would be safe to assume that I would have interest in the above stock.