Stock Review: Jayant Agro

Jayant Agro again is the largest or the widest range of making these castor oil derivatives and its products. It is a oleo chemical company and they are the largest in the world. If you see, the performance of the company, for FY11, they are likely to have a topline of about maybe close to 1,200 crore with an EPS of maybe over 20.

But if I take a conservative EPS, if I take that at about 19-20, also it is ruling at a P/E multiple of 5.5 and recently some of the joint ventures also have started contributing to the company's performance and they have a strong presence. Infact the castor seed production this time has been good in Gujarat, the kind of information which has been gathered and the application of the derivatives, castor seed oil and its derivatives have wide applications whether you talk of paint, pharmaceutical, food processing and all that.

So there is likely to be improvement in the realization also because worldover we see the food products and its prices have been going up. Though this stock is quite volatile and we see it maybe correcting by about 10-15% or maybe going up also, by about 20-25%, but if somebody can take a view of 4-6 months on the stock, I think he can expect a return of about 25-30% from the current level in about 4-6 months time.