Trend Electronics Target 180

[indexed]

The Trend Electronics Limited is grossly undervalued compared to its
peers

The price performance of Trend Electronics and its peer is as given
below

Company CMP Price Last Yr and Change% Price Lat Mth and Change %

Trend Electron 30.65 Over Year 21.15 44.92% Over Month 31.95 -4.07%

Videocon Indust 248.70 Over Year 133.25 86.64% Over Month 225.15
10.46%

BPL 37.70 Over Year 21.40 76.17% Over Month 36.05 4.58%

Mirc Electronic 18.20 Over Year 11.21 62.36% Over Month 18.05 0.83%

Sharp India 27.55 Over Year 13.00 111.92% Over Month 26.15 5.35%
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The Performance of the company over a year was noteworthy

Change from Oct 07 to Sep 08 to Oct08 to Sep 09

Total Income Rs. 782cr to 842 Cr(7.67%)
Total Exp Rs. 748cr to 811 cr(8.42%)
Op Profit Rs. 26cr to 31 Cr(19.3%)

Net Profit Rs 2.4 to 3.71 cr (54.55%)
Capital base 0.75 cr
EPS 3.2 to 4.95 (54.55%)
Dividend 0.5 per share to 1per share (expected)

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Target for Oct 09 to Sep 2010 is as follows

Total Income Rs. 1085 Cr
Total Exp Rs. 1025 cr
Operating Profit Rs. 60 Cr

Net Profit Rs 27 cr
Capital base 0.75 cr
EPS 36
Book Value Rs 153.78 expecting a dividend of Rs 10 per share...

At current valuation of Rs 31 which is 6.3x the valuation expected is
Rs 180 (5x) within a year