9 month ending Dec 2010 Jayant Agro has:
Consolidated Sales: 843Cr
Consolidated PBDIT: 51.71Cr
Net Profit: 20.31Cr
on an Equity of 7.5Cr and Face Value of each shares as Rs 5 EPS works out to be: 13.54
Pls note this is for 9 months data. the PE at share price of Rs 100 is 7.38
Now let us look at the historic PE of Jayant Agro Organics.
The highest PE in 4.33 yrs is : 38.62 on Jan 2008
The lowest PE in 4.33 yrs is: 6.28 on Dec 2008
The current PE of 7.38 is actually rock bottom PE of Jayant for past 4.33 yrs.
(Because this PE is calculated over 9 months) and we still have 1 Quarter of Results "This is Rock Bottom"
if you look at the Big Picture!!
Conclusion: Jayant Agro is a castor derivatives market leader and the market is yet to discount the huge increase in earnings that Jayant Agro has reported in past 9 months (Link). Assuming even a conservative 15 PE jayant should be valued at 203 (assuming 9 months of earnings data) So this is a conservative estimate and a recommendation to buy with at least 12-18 months horizon and 100% appreciation from these levels..
Posts
