RHL at current level

ISURU · 1 RHL at current level Sun Jun 05, 2011 11:20 am

ISURU

Senior Manager - Equity Analytics

Posts : 580
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Join date : 2011-02-06

Hi,
Is it worth to purchase RHL (RENUKA HOLDINGS PLC) at current price level (i.e.~69,70) Question

NEM · 2 Re: RHL at current level Sun Jun 05, 2011 11:52 am

NEM

Senior Equity Analytic

Posts : 94
Equity Stars : 4257
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Join date : 2011-05-23

According to RHL last quarter report
EPS = Rs 6.46 2010/2011FY EPS = Rs 14.65
If we neglect other income the last quarter EPS would be around Rs 2.00, So annualized EPS = Rs 8.00 for the last year EPS (with out other income) = Rs 8.00, So the sector PER is 29.5 but i think when we calculate the value of a share it is fair to consider half of the sector PER. So fair PER = 14.7
Value of an RHL share...
With other income = Rs. 215.35
With out other income = Rs 117.60
So i think RHL is hugely undervalued. so Rs 70 for an RHL share is not bad

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RHL at current level

1 RHL at current level Sun Jun 05, 2011 11:20 am

ISURU

2 Re: RHL at current level Sun Jun 05, 2011 11:52 am

NEM