UBS Sec has Sensex target of 22,600 by ’08-end

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Speaking to CNBC-TV18, Manishi Raychaudhuri, ED, UBS Securities said that they have a Sensex target of 22,600 by 2008-end and added that they expect 21-22% Sensex earning CAGR over three years. He said that the markets, at 21 times, are fully valued and that there isn’t much re-rating potential for markets at these levels. According to him, the cost of capital is coming down and higher a P/E is sustainable.

Raychaudhuri said that many sectors are appearing fully valued but no collapse is likely. He is positive on the markets for 2008. According to him, midcaps are playing catch up with largecaps due to huge valuation gaps. He added that IT, some engineering and construction largecaps have bidding advantage for large, high margin projects.

“The is plenty of money from both, international and domestic investors, waiting on the sideline,” Raychaudhuri said.

Excerpts of CNBC-TV18’s exclusive interview with Manishi Raychaudhuri:

For More : moneycontrol.com

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