Kilitch Drugs has target of Rs 121: VK Sharma

Sharma told CNBC-TV18, "Kilitch Drugs is an anti bacterial drug making company with facilities in Mumbai and near Ponta Sahib which is equidistant from Chandigarh and Dehradhun. The reason why I like this stock is that it is putting into place a plant which will get approval of USDFA and UK and the South African markets as well. Two mock audits have already happened currently and inspections are slated sometimes between September to December 2010 and usually in 21 days after inspections you get that license. Similarly for the UK and the South African Markets inspections would go through in the current year.”

He further added, “For the current year although the TTM EPS is about 8.5 we expect this to post for March 2010; which is currently running and for this we should have an EPS of about Rs 10 which makes it reasonably a cheaper stock. From 1st April 2010 we expect this company to show a bottom-line increase of around 50%, so from that perspective we had given a target of Rs 121 for the day which is met and for the longer term perspective one can easily look for a target of Rs 120 plus."

At 11:00 hrs the share was quoting at Rs 118.50, up Rs 2.75, or 2.38% with volumes of 71,939 shares. Market capitalisation stands at Rs 156.45 crore.

The company touched its 52 week high Rs 157.10 and 52 week low Rs 58.00 on 12 Jan, 2010 and 08 Apr, 2009, respectively. Currently, it is trading -24.57% below its 52-week high and 104.31% above its 52-week low.

The company's trailing 12-month (TTM) EPS was at Rs 8.54 per share. The stock's price-to-earnings (P/E) ratio was 13.88. The latest book value of the company is Rs 48.78 per share. At current value, the price-to-book value of the company was 2.43. The dividend yield of the company was 0.84%.