PSL has target of Rs 94, says Aunali Rupani, Director, ARM Research.
Rupani told CNBC-TV18, "PSL is India's largest HSAW pipe manufacturer. The order book is going to go up from Rs 1535 crore to almost Rs 2000 crore by March 2011. Now the market cap of the company is close to Rs 481 crore but they have healthy reserves of Rs 785 crore and a healthy book value of Rs 156 per share."
He further added, "The interesting fact is that they have an EPS of FY11 close to Rs 25 that means this stock is available at 3.7 PE. So it's a value buy in my eyes and the best logic in the counter is that if crude price goes up, pipe sector normally outperforms. Target for the day is Rs 94."
Disclosure: I have no personal holding in the above stock, but have recommended it to my clients.
