MRPL may test Rs 104, says Vinay Pandit

Vinay Pandit, Sr VP-Institutional Equities at Centrum Broking told CNBC-TV18, "On MRPL, we have a target of Rs 104 against the current price of around Rs 65-68. The big change that we identified in this stock was that their phase-3 commissioning was coming into place. This would have helped improve their product slate. Further this is also helping improve their gross rent multiplier (GRM). So their core GRM which was as low as USD 0.4 last year end of Q4, FY14, has moved up to USD 6.7 in Q3 and in the last completed quarter they have reported core GRM north of USD 8. And further with the petrochemical (Petchem) plant commissioning happening now, we are expecting further USD 1.5 core GRM improvement."

"Definitely the stock is showing the kind of promise that we had anticipated with the phase-3 commissioning coming in, with the Petchem plant coming in, with the product slate improving, the product basket improving. Overall the company is definitely a multibagger and if we look at it, they have also acquired a 51 percent stake in OMPL now. So, if we look at the valuation, OMPL would be approximately Rs 14 a share for them and their core business would be valued at approximately Rs 90. So, that gives you a target of Rs 104, that is like a huge upside from current price of Rs 68-67," he said.