After recent optimistic report by India’s top broking firm K.R. Choksey which predicted an extremely bright future for Indian Starch Sector Leader Riddhi Siddhi Gluco Biols Ltd., research arm of another leading broking firm of India – Anagram, in its latest Research Report dated 19th October, 2010, has predicted consistent topline growth & robust bottomline growth for Riddhi Siddhi in the coming two fiscals.
In its report Anagram says ” Riddhi Siddhi is the biggest starch producer of the country enjoying the highest market share of 18% of the organized sector. The company is presently catering to the leaders of the growing sectors. The company is likely to witness higher demand on the back of better performance by the user segments. The company is going to achieve 1000 Crs sales and likely to have healthy growth rate on the back of expansion project at Rudrapur and introduction of high margin products.
The stock is currently trading at 5.5X FY11E and EV/EBIDTA it trades at 4X FY11E. The stock is trading at 26% discount to its nearest competitors on EV/EBIDTA basis despite of the largest production capacity and decent financial track record. On the absolute term the bottom line is expected to grow to Rs 96 Crs and Rs120 Crs during FY11E and FY12E respectively. The stock trades at 4X to its FY12E earning and we recommend accumulating this stock with the target price of Rs 580. “
Entire Report can be downloaded from :- Click Here
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