On a consolidated basis Granules India reported a sales of Rs.204 Cr v/s Rs.188 Cr in March quarter.Company reported a net profit of Rs.12 Cr v/s Rs.16 Cr during this period.But in last year same quarter there was a forex gain of Rs.8 Cr out of Rs.16 Cr net profit .If we exclude this exceptional income,company's this quarter profit is almost 50% higher than that of last year same quarter.Company also declared a dividend of 20% for FY 2012-13 .Its full year EPS is Rs.16 .
Considering the current qtr eps of Rs 5.5 which gets about double in one year post expansion,can`t its eps will be about Rs 11x4=44, and if its NPM also increases by 50% which is likely due to enhanced production ,can` t its eps will be about Rs 66 ,and given the agressiveness of the mgmt for sales growth@20%,shouldn`t its` PE be 20,i.e, the fair value of stock be about Rs 1320 in one year?.
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