Jayant Agro: Promoters expect 35% compounded growth per year for the next 2 years

On June 24,2010 in an interview with CNBC-TV18 promoters Mr Udeshi has stated:
1. Value added products manufacturing has been started.
2. We should see the impact of this from the 2nd half of 2010
3. Company is expecting 30-35% growth in topline and bottomline
4. Seed crushing capacity has already been increased from 900 MT to 1200MT per day crushing capacity (last year completed)
5. 3rd and 4th generation castor derivatives to be produced in the Mitsui JV: Ihsedu Speciality Chemicals Limited.
6. Operating Margins are going to expand by 150 basis points ie 1.5% from 5% to 6.5%

Conclusion: Jayant Agro had 887Cr March 2010 Consolidated revenues and an operating margin of 4.63% (link) considering 35% growth in topline and 6.5% margins:
March 2011 Sales: 1197.5Cr (Projected)
Operating Profits March 2011: 77.87Cr
Net Profit March 2011: 23.96Cr with EPS of Rs 16/= per share.
The Jayant agro shares should be quoting close to 250-300 levels (1 year target) considering current PE of 21. I am also certain that these are conservative estimates but these are good first level targets for Jayant Agro Organics. Strong Buy

PN: these are my personal views.. Jayant Agro was recommended as a "Best Buy" on May 15,2010 at 81.55 (link) along with Gujarat Ambuja Exports. Target for Jayant is close to Rs 500 per share on a 2 year horizon. Please do your own deep dive before investing

Link to the CNBC TV 18 Interview