JBF Industries has target of Rs 220, says Jigar Shah, Sr VP and HOR of Kimeng Sec India.
Shah told CNBC-TV18, "For JBF Industries we see a target price of Rs 220 on a modest PE ratio of four times for FY12. We are forecasting Rs 55 of earnings for the company this year, which is down year-on-year. But we should not forget that FY11 was a huge year with earnings rising three times as compared to FY10."
He further added, "We feel that the stock is quite undervalued, especially when the spreads from polyester yarn as well as from pet films have remained steady. We expect very robust Q1 earnings, which will be announced this month."
