Codan Limited (ASX: CDA) Over the years the company has expanded its business through acquisition to include metal detection devices and mine tracking technology. The company manufactures and distributes products and technology globally to niche markets and seeks to be a market leader in all these markets. After a significant decline in revenues in FY14, the company is working to turnaround the fortunes of the company, continuing with product development, protecting IP, and entering new markets to grow sales. IIR have assigned CDA a target price of $1.07 per share. IIR have used a relative value approach to determine the target price due to the non-recurring nature of revenue. IIR have applied a 13.7x multiple to FY16 EPS to arrive at the target price. The multiple reflects a 35% discount to the average PE multiple of the S&P/ASX Small Industrials Index. While there are risks associated with the business we view the 11x multiple that the company is currently trading at to be low compared to the index and given the expected upside to earnings in FY16. See research attached.