Current Price: ₹ 420 (omg')
Market Cap.: ₹ 1,851.73 Cr.
Book Value: ₹ 607.70, PE Ratio 5.42
Return on capital employed: 21.38%
Quick ratio: 1.05
Dividend Payout: 1.20%
Number of equity shares: 4.38 Cr.
Annual Sales:2644 Cr. EPS: ₹ 78.78 Expected EPS: ₹ 112.08
Cash end of past year: ₹ 99.82 Cr. Cash end of last year: ₹ 110.31 Cr.
Price to Cash Flow: 2.97.
Everything looks fine,at the current price the stoke is under valued, and find it is far better than its peers like Aarati, Alkalies or Tatachem'.
This numbers are Extracted from the internet, if it is true the stock worth ₹ 5000.
to me. if you ask me for details also I have justification. it has a good ROE. My expectation is only a 55 PE multiple.Already it competitor the Godrej Ind is trading with 56 PE.
Always welcome a genuine doubt.
If you ignore Godrej and check any other company in the same sector they are trading around 12-22 times PE
Eg Aarti Inds. @ 22 times, Tata Chemicals @ 12.6 times
I agree that Jindal Poly Film has good ROE of around 18%, but 56 times PE may happen in case of extreme bull-run.
I may give PE of around 22 times and with EPS of around 62 , 62*22 = 1364 looks fair valuation in current scenario.
Let me know incase i am still undervaluing the same.
So 44 * 22 = 968 will be the revised Valuation from my side.
it is just my view on set condition, as every one has a different view based one their convenient comparison. We all do that. never mind it. But all will agree that it is undervalued at current price.That is what I want to point out here. Forget the projection I have given, it can vary any time based on the fundamentals,management actions,goodwill,& finally as you mention market conditions( in case extreme bull run) etc.
Yes stock is undervalued so lets hope the same to spike in near future.
Thank you for your Valuable time.
Generally people doesn't bother all these calculations.
But before entering in to an investment one has to think twice,and discuss it in a forum like this
with your friends or blog-mates,exchange and share your concern, opinion and ideas,
which can give us more insight about an investment,may help us to take a better decision.
However People are generally interested in Tips and quick money.
Hence they dont work on numbers and end up buying companies at overvalued levels.