Edelweiss - Repro India - Nothing has changed.... but the price - Upgrade to BUY

[Sunil]

Repro India (REPR IN, INR 89, Upgrade to Buy)

We upgrade the stock from an ACCUMULATE to a BUY due to:

 

• Recent underperformance of the stock post downgrade: The stock has fallen 43% from INR 156 on 11^th January '07 to CMP of INR 89, as compared to a 5% fall in Sensex during the same period

 

• Attractive valuations: At the CMP of INR 89 the stock trades at 7.3x FY08E EPS of INR 12.1 and 6.5x FY09E EPS of INR 13.7 and 1.09x FY07E book value. We have not factored in our estimates, potential tax savings arising out of its new STP conferred facility.

 

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