Saturday, August 19, 2006

Orchid Chemical

Orchid NSE from Jan 2004
Orchid Chemicals and PharmaceuticalsAt the current market price of Rs205, Orchid is quoting at 13.2x its FY2007 estimated earnings and at 8.4x its FY2008 estimated earnings, on a consolidated basis. The stock has undergone a steep correction in recent times, and we believe it is attractively valued at the current price. We maintain our Buy recommendation on Orchid, with a price target of Rs390. - SSKI