In FY11E, we expect an EPS of Rs.9.7 for Geometric, which is expected to move up to Rs.10.5 in FY12. For FY12, we expect tax rate to increase to 20% v/s about 4% in FY11. Our DCF – based price target for Geometric works out to Rs.86, based on FY12E earnings (v/s Rs.71 earlier). We upgrade the stock to ACCUMULATE. Our exit multiple works out to 8x FY12E EPS.
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