The company has reported a Q1 EPS of Rs. 5.5 ( standalone) and Rs 7 ( consolidated). Considering that the profits have been consistently increasing every quarter since the company got listed, we can safely assume that the 2007 -08 EPS would be in the range of Rs. 25 ( consolidated) if not more. Allowing a discounting of around 15, we can safely predict the price to touch Rs. 400 in one years time.
However, I suspect that the company may not pay a dividend this year. If this happens, then it may dampen the sentiment. However if it maintains 10 % or increases it to 15 % , then the price can easily zoom to Rs. 300 .
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment