We had earlier recommended a BUY on FDC on 24th Dec. 2008,(click here ) when the share price was less than Rs. 30.We had expected the share price to appreciate to Rs. 40 in a year’s time.However just in 5 months the price has exceeded Rs.40, and now the stock appears to be heading towards a 3 digit mark if the latest results for FY 09( see here ) are any indication.For FY 09 top line and bottom line gowth has exceeded 20% and the share is available at P/E of 7 and PEG of less than 0.4.

Results of coming Q’s are going to be excellent,as the Mgt. has provided Rs. 13 crores as diminution in the value of the investments the Co. was holding as on 31st March 2009 .Since then the value of such investments has multiiplied a few times and the provision that has been provided will be added to profits for Q1 of FY10.For FY10 we expect an EPS of Rs. 10, a quantum jump of 100 % from FY09. 

Buy is again recommended on declines.

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