Manali Petro : Face value Rs 5 : Buy at CMP Of Rs 16-17 one year Target Rs 25

"Manali Petrochemicals Limited (MPL) is a leader in the production and marketing of Propylene Oxide, Propylene Glycols and Polyols in India. Located at Manali in Chennai, India, MPL is engaged in the manufacture of the above Petrochemical products. The Company operates two grass root production facilities at Manali to manufacture Propylene oxide (PO), Propylene Glycol (PG) and Polyols. It markets its Polyols with isocyanates sourced indigenously as well as imported from Japan and China and the pre-polymers produced at MPL in meeting the demand of polyurethane industry in India."

The products have diversified application in growing industry such as consumer durables,pharma, auto-mobiles ,food ,fragrances.

Company has been growing at decent pace and almost debt free has been paying dividend for last 2 years and last year dividend was 0.60.Recently come up with excellent Q-2 results with half year EPS of 1.16 and expected EPS of full year is around Rs 3 for FY-14-15.

Looking at business model and expected growth stock looks very attractive at current levels.Investors can invest in this company for minimum 1 year period for 50% returns from current level.

Good Luck