Update on Navkar Corp. Quality stock at cheaper valuation. Price 150.
Stock has hit 52 low recently. Technically the trend is down and can spike towards 160 and 180 in 10 days and 6 weeks respectively.
Fundamentally stock is trading at PE below 25x while its peers trade closer to 30-32x. Stock is 20-25% cheaper to its peers and can post good results in next 6 to 8 quarters.
We have a long term target of 230 in 12 to 18 months and Target of 275-300 in 2 to 3 years time.
Since the trend is down, on can wait for the trend to reverse or keep adding few shares on dips. Those who hold can add few shares now and exit few shares on rally towards 175-180 in 6-8 weeks and wait for the next quarter result.
At 25x current quarterly EPS of 1.69. Fair price is 169.
At 30x current quarterly EPS of 1.69. Fair price is 204.
The range will remain 135 to 205 for next 3 to 6 months.