Kotak's analysis suggests that mix improvement has contributed to a 5% benefit in sales for APNT in FY2010. In line with our expectations, price increases by APNT and competition in 1QFY2011 (~7%) likely indicate the industry’s intention to defend gross margins. Increasing innovation and activation spends by the competition could warrant higher marketing spends for APNT.
Kotak expects an EPS of Rs Rs81.5 and Rs101.1 for FY2011E and FY2012E, respectively with a price target of Rs 2500. WEll, that's expensive in my view and I wouldn't BUY the stock now at a forward P/E of 30x
