Buy Country Club (India), tgt Rs 1050: Prabhudas Lilladher

Prabhudas Lilladher has maintained its buy rating on Country Club (India) with a target price of Rs 1050 in its July 7, 2008 research report. "Country Club India (CCIL) reported net sales growth of 82.3% YoY to Rs 837 million against our expectation of Rs 825 million for Q4FY08, on the back of strong growth in membership subscription. For the year, revenue grew by 101.8% YoY to Rs 3,062 million against our expectation of Rs 3,055 million. Operating margins declined by 72bps to 36.7% and PAT grew by 85.8% YoY to Rs 653 million."

"At the CMP of Rs 423, the stock trades at 7.1x FY09E and 4.2x FY10E earnings. We believe that CCIL should trade at a premium to the current valuations, given its strong revenue and profit growth. We maintain BUY rating on the stock with a target price of Rs 1,050 (10x FY10E)," says Lilladher's research report.

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