The company is currently trading at P/E TTM 29.74x just after the September 2010 quarterly results were declared. The 1-year forward P/E stands at 16.64x given the expected growth rate of earnings be 37.38%. By this standards, PEG ratio stands at 0.45, suggesting an undervalued scrip.
Historically, the scrip has been trading between the 10x and 30x P/E. If we take into consideration the FY Jun 2011 results, a horizon of 9 months, an optimistic view-point may report an EPS of Rs. 25.10 that if be trading at the company's current P/E of 29.74x will give an expected stock price of Rs. 746, an appreciation of 79%. On the flip side, a conservative EPS figure of Rs. 21.80 at current industry P/E of 25.83x will five an expected stock price of Rs. 563, an appreciation of 35%.
