Anand Rathi has a BUY recommendation with a target price of Rs 1080. Here is an excerpt of their recommendation,
Company is one of the largest plastic processor in India, processing about 1,92,000 MTs of polymers annually. It has comprehensive plastic product portfolio including - Plastic/PVC piping & Fittings [43.59%], Packaging Products [24.11%], Industrial Products [20.48%] and Consumer Products [11.83%].
Apart from strong cash flows from core business, the big cash flow & profits are expected from recently completed commercial property in Mumbai; which may lead to exceptionally great cash flows for company in current year. Even without property gains, company can report EPS of Rs 90 and with these gains [if property is sold out in current FY] additional cash flows could be over Rs 300 Crs. Even excluding property gains, stock is available at attractive P/E of just 7.5X for FY'11. Looking to almost zero debt status, high ROACE [40%], ROANW [43%], liberal payouts and attractive growth trajectory, the stock should get discounting of at least 12X for FY'11 Est. earnings.
