Brics PCG: Buy Elder Pharma

Brics PCG Research recommends Elder Pharma at the current market price of Rs 291 with a target price of Rs 433.

The company has been able to outperform the Sensex as well as the mid-cap and small-cap indices by a handsome margin even during the recent turmoil.

While the Sensex has crashed 25% since it achieved its closing peak of 12,612 on May 10 and the mid-cap and small-cap indices have fallen more by 32 %and & 37% respectively.

Elder Pharmaceuticals has lost only 14% of its market cap between May 10 and June 12.

The company is trading at 10.9x FY07E EPS and 7.5x FY08E EPS, which it believes is very attractive.