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Emkay Global Financial Services has target of Rs 113, says Investment Advisor, SP Tulsian.
Tulsian told CNBC-TV18, "Emkay Global Financial is a mix of a call partly on fundamentals and partly on the news base, which we hear from the market. If you see the share price of Motilal Oswal, India Info, Aditya Birla company or Essar Securities, they have all run up in the last two-three months and this stock has been languishing for quite sometime. But for the past one week or so there has been a good movement in the stock and people are expecting some corporate news coming in from the company, which can include even the stake sale by the promoters.”
He further added, “If you see the stake of the promoters which is close to about 72% and seven investors are holding 15% stake in the company, so if I presume that the stake sale happens at a reasonable valuations because share is now having a market cap of 2x of its top-line. The company is likely to have an EPS of about close to Rs 6 for FY10 which can increase with the better market conditions all that.”
“Even if I take a fundamental call share is having a reasonable upside from hereon but if the stake sale news happens and if there is open offer there will be full acceptance and the kind of price which is being talked in the circle that it could be at Rs 150 or so, can give a further push to the stock. But I have recommended the stock for the day with a target of Rs 113.”
Emkay Global has touched a 52 week high of Rs 114.65. At 13:17 hrs the share was quoting at Rs 114.65, up Rs 10.40, or 9.98%. Market capitalisation stands at Rs 278.84 crore.
The company's trailing 12-month (TTM) EPS was at Rs 3.10 per share. The stock's price-to-earnings (P/E) ratio was 36.98. The latest book value of the company is Rs 51.96 per share. At current value, the price-to-book value of the company was 2.21.
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