Buy Solar Industries India; target of Rs 52: KRChoksey

KRChoksey is bullish on Solar Industries India and has recommended buy rating on the stock with a target of Rs 52 in its September 2, 2010 research report.

“Solar Industries has traded in forward PE band of 5.40x- 21.45x. There is visible and secular growth potential for the company for next 5-7 years period. Our 9x Forward PE multiple assigned to Solar falls on conservative side. Solar is the most attractively priced among peers (both domestic as well as global) compared to returns it has offered to its shareholders."

Buy Solar Industries India; target of Rs 52: KRChoksey
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* See previous views by KRChoksey
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* See messages about Solar Ind

"Gross sales are growing at 23% CAGR from FY10-FY13E due to 33.2% growth in explosives business. Operation of explosive plant in Africa is leading to high growth in explosives sales. This is also shifting revenue mix in favour of explosives (from 59.9% in FY10 to 76.3% in FY13E. Realisation from African market is almost 2.5x Indian market. We recommend STRONG BUY on Solar Industries with 1 year price target of Rs 631.65, which gives potential upside of 39% from CMP of Rs 455,” says KRChoksey research report.

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From: http://www.moneycontrol.com/news/recommendations/buy-solar-industries-india-targetrs-52-krchoksey_482651.html