Goa Carbon's stock attractively priced

Beta: 0.64
Institutional Holding: 0.01%
Dividend Yield: 2.23%
P/E: 5.0
M-Cap: Rs 115 cr
CMP: Rs 127

VALUATIONS:

Goa Carbon’s earnings per share (EPS) stood at around Rs 13 in the first quarter of FY09. It has a healthy book value of Rs 65 per share on a modest equity capital of Rs 9.2 crore. On a conservative basis, the company can expect to generate net profit of Rs 30-33 crore in FY09, translating into an EPS of over Rs 35.

At its current market price of Rs 127, the stock is attractively priced at around 3.5 times its one-year forward earnings. This is much lower than its current P/E multiple of over 5 and offers significant upside potential in the medium term.