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Last Updated : Jul 24, 2015 03:08 PM IST | Source: CNBC-TV18

Shilpa Medicare attractive buy: CA Rudramurthy

CA Rudramurthy BV at Vachana Investments is of the view that Shilpa Medicare is an attractive buy and feels that the stock may double in 2-3 years.

CA Rudramurthy BV at Vachana Investments told CNBC-TV18, "Shilpa Medicare for last ten years has given a compounded annual growth rate (CAGR), CAGR on sales at about 40 percent, an excellent return on investment (ROI) and return on equity (ROE) crossing 30-35 percent and still available at a trailing PE multiple of around 30-35 times. For a forward looking earnings, it is just trading at 25 PE multiple which makes it a very attractive buy."

"Recently two of its Raichur plants has also seen US FDA visit and they are awaiting for an approval. I definitely believe 2016 end onwards they should at least keep up with the US sale and that should give a wonderful topline and bottomline. I expect the stock to at least double from current level from a two to three years perspective," he said.

First Published on Jul 24, 2015 03:00 pm