 "Marico Kaya surges 20% on brokerage upgrade")
Shares in Marico Kaya Enterprises is locked in upper circuit of 20% at Rs 1,165, also its record high on BSE, after broking firm Motilal Oswal Securities initiated coverage on the stock with a 'Buy' recommendation.
Till 1123 hours, a combined 569,025 shares changed hands and there are pending buy orders for 67,260 shares on BSE and NSE.
Over the last decade, Kaya has had a long learning curve and has staged an impressive turnaround over the last eighteen months.
With the company now having de-merged from Marico, we believe the company will not experiment too much with its business model and maintain its core focus on skin care services, Ravi Shenoy, analyst at Motilal Oswal Securities said in a report.
The stock is currently trading at a P/E of 25x FY17E EPS which is a 22% discount to other consumer stocks. We thus value the company at Rs 1250 at a P/E of 32x FY17E in line with the consumer basket, he adds.
Till 1123 hours, a combined 569,025 shares changed hands and there are pending buy orders for 67,260 shares on BSE and NSE.
Over the last decade, Kaya has had a long learning curve and has staged an impressive turnaround over the last eighteen months.
With the company now having de-merged from Marico, we believe the company will not experiment too much with its business model and maintain its core focus on skin care services, Ravi Shenoy, analyst at Motilal Oswal Securities said in a report.
The stock is currently trading at a P/E of 25x FY17E EPS which is a 22% discount to other consumer stocks. We thus value the company at Rs 1250 at a P/E of 32x FY17E in line with the consumer basket, he adds.
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