Equity Alert: Citi reiterates 332 rupee target price on Orchid Chem
MUMBAI--9:50AM--Citigroup has reiterated its target price on
Orchid
Chemicals at 332 rupees.
The company had set 332 rupees target price earlier on Jul 21,
which was
revised downward from 386 rupees set on Mar 6.
The target price is based on 16-times multiple on projected
2008-09
(Apr-Mar) earnings, the report said.
Citigroup recently hosted investor meetings for Orchid Chemicals
at Hong
Kong and Singapore.
The company expects to double sales and profits over three years
but sees
a "sedate" 20% growth in 2008-09, the report said.
Citi expects its anti-bacterial generic piperacilin tazobactum to
generate more revenues for the company as it is the only company with
approval from the European Union so far.
Orchid intends to actively retire debt here on, from its high
leverage
balance sheet, as its entire capital expenditure program is complete.
Thursday, Orchid Chemicals shares ended at 214.45 rupees, down
1.7% from
previous close.
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