Maintain BUY on EID Parry on diversified play - JM Financial Institutional Securities Private Limited

We continue to like EID Parry (EID) on its geographical advantage (located in TN, Karnataka and AP) resulting into relatively lower cane cost and ability to exploit export/import opportunities. We value EID on Sum of Parts basis: a) sugar and allied business at 0.6x EV/replacement value, b) stake in CRIN at 35% discount to our base TP, and c) other subsidiaries at 0-20% discount to book value. We maintain BUY with Sept'14 TP of Rs. 166.

Source : Equity Bulls

Keywords