Reiterate Buy on Sintex Industries - Goldman Sachs

Goldman Sachs has reiterated Buy on Sintex Industries Limited due to strong business outlook and attractive valuations.

The research firm has given a target price of Rs.236 as compared to Rs.202 earlier, implying a potential 32% upside. The target price is based on PE of 11X for FY2012 expected EPS in-line with the 5 year mean 12 months forward P/E.

The company has said in its report that Sintex's stronger margin performance in custom molding subsidiaries, improvement in working capital efficiency, new order wins as key catalysts for the growth.

The company also stated weakness in Wausaukee's performance, entry into non core businesses, execution delay and rise in raw material prices as key risks.

The stock closed the day at Rs.175.55, down by Rs.3 or 1.68%. The total traded quantity was 10.10 lakhs compared to 2 week average of 4.41 lakhs.

The stock hit an intraday high of Rs.179.75 and low of Rs.174.05.

Source : Equity Bulls

Keywords