Hold Sintex Industries, target Rs 65: Agarwal

Rajesh Agarwal, Head of Research, Eastern Financiers Limited is of the view that one can continue to hold Sintex Industries with a price target of Rs 65 in the next three-six months timeframe.

Agarwal told CNBC-TV18, “We expect the top line of Sintex Industries to grow by around 20-22 percent and bottom-line to grow by around 5 percent only. The problem is there is no volume growth, neither in the prefab segment nor on the monoliths segment. Although the concerns regarding the Foreign Currency Convertible Bonds (FCCB) redemption has been taken care of and which would take care of this stock in the near term.” He further added, “Even on the valuation parameters it is trading at a price to book of 0.5 and price to earnings of five times. One can continue holding on this stock with a price target of Rs 65 in the next three-six months. However adding on this stock at this point of time I would not suggest because the numbers are still not good and the performance has been pretty tepid. Even going forward with 5 percent jump in bottom-line I don't think there was anything to talk about. So still if one wants to continue to hold to the stock just because of the valuation parameters one can continue and book his losses around Rs 65.”