Shasun Chemicals

 

This is the only company where our comfort level is very high. In fact, we have a price target of around Rs 60-70 for this stock. It's basically into active pharmaceutical ingredients (API). This contributed around 63% of turnover. They are also into contract research and manufacturing services (CRAMS) which should scale up in the next one-two quarters and this is a company, which had problems with derivative forex exposure. The losses for the next two years should be much lower than what we have seen in the recent past. We are looking at an EPS of around Rs 6 for this year and around Rs 9 for next year. Based on that we are looking at a price of Rs 60-70.