Analysts` corner

RESEARCH CALLS

Champagne Indage Ltd (CIL) has firmly entrenched itself in the domestic wine market with an over 65 per cent share on the back of integrated facilities and a portfolio of over 30 brands. It has three wineries in Narayangaon district in Maharashtra, and has recently set up another winery in Himachal Pradesh.

While domestic production capacity is up to about 14 million litres per annum from 2.4 million litres in FY06, CIL is planning to further ramp up its capacity to 19 million litres by FY10.

With wine consumption gaining popularity in India, CIL plans to foray into wine retailing. The company is expected to invest Rs 100 crore for its retail expansion over the next three years, of which it has already invested Rs 45 crore.

Further, to stoke its international aspirations, it has aptly acquired two wineries (120 million litres capacity) in Australia (world's fourth largest exporter of wines) and forged a tie-up with Nordic Spirits of Sweden thereby bringing Vodka to the company's portfolio. CIL is poised to register robust growth in topline at a CAGR of 50 per cent over FY07-10E. Based on PEG valuation, we arrive at a target price of Rs 755.

Elder Pharmaceuticals
Reco price: Rs 367
Current market price: Rs 368.90
Target price: Rs 535
Upside: 45.03%
Brokerage: Emkay Share and Stock Brokers

Elder Pharma reported decent performance during Q4FY08 with a 32.3 per cent year-on-year (YoY) growth in topline to Rs 156.4 crore and 36.5 per cent YoY growth in bottomline to Rs 20.42 crore. The growth in revenues was mainly on account of strong performance by its leading brands like Shelcal, Chymoral, Eldervit, etc. Also, its new launches like