Sintex Industries posted a really strong set of numbers this weekend. It’s total income stood at 4,484 cr in FY11 as against 3,319 cr in FY10, up 35% and net profits in FY11 stood at 460 cr as against 329 cr a year ago, up 40%. Brokerages were expecting a growth of not more than 30% for FY11 so the company has delivered results way above expectations. The market is definitely going to give value to such robust growth numbers next week. I have personal holding in this stock from the levels of 155.

Sintex Industries posted an EPS of 17 which relates to a P/E of close to 10 as per the current market price of 170. Sintex Industries has enjoyed a P/E of 15 in the past and thus we can possibly see this stock moving up in near future. Even if we discount the P/E multiple from 15 to 12 seeing the current market conditions, we can see possible targets of 205 in short term. Brokerages estimate a 20% growth in earnings in Sintex Industries in FY12 and thus the expected EPS can go upto 20.5 for FY12 and with a similar discouted P/E multiple of 12, we can see possible targets of close to 250 from a long term view.

Buy Sintex Industries (cmp: 173) with targets of 250 from a 12 months perspective.

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