Heranba Share Price – After bumper listing, is the stock cheaper or expensive? See this EXCLUSIVE research

After a bumper listing of Heranba Industries, how is the stock faring against its peers? Today Heranba share price ended at Rs 826 on the NSE, falling by over 8 per cent or Rs 74. Is the stock cheaper or expensive to buy now? In an Exclusive Research by Zee Business’ Varun Dubey, the Senior Research Analyst unravels the mystery before Managing Editor Anil Singhvi. 

Dubey said that even after a strong listing, the stock remains cheaper in terms of valuations. At the issue price of Rs 627, Heranba Industries shares were available at a PE multiple of 22 or a Price-to-Book (PB) value of 6.4. At this price the trailing 12-month PE comes around 30. The Industry PE comes to 30 or the PB value is at 7.3 as against the current PB of 8.7. 

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The peers including Sumitomo Chemicals is available at a PB of 10.7, Punjab Chemicals at 9.3. Rallis India is the only company which is trading at a PB value of 3.3.  

The growth between FY18 and FY 20 has been strong at 28 per cent. The Industry has grown at 29 per cent, he said. 

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Though the PAT margins are at a slightly lower end, they are not that low at 10.7 per cent. 

But in terms of valuations, the stock is available a much lower valuations, he said. 

The stock hit a high of Rs 945.