Firstcall Research is bullish on Poddar Pigments and has recommended buy rating on the stock with a target price of Rs 52 in its June 17, 2013 research report.
Firstcall Research report on Poddar Pigments
"Poddar Pigments' net profit jumps to Rs. 35.18 million against Rs. 24.79 million in the corresponding quarter ending of previous year, an increase of 41.91 %. Revenue for the quarter rose 25.50 % to Rs. 746.80million from Rs. 595.04 million, when compared with the prior year period. Reported earnings per share of the company stood at Rs. 3.32 a share during the quarter, registering 41.91 % increase over previous year period. Profit before interest, depreciation and tax is Rs.56.84 millions as against Rs.52.53 millions in the corresponding period of the previous year."
"Outlook and Conclusion: At the current market price of Rs.45.00, the stock P/E ratio is at 3.21 x FY14E and 2.82 x FY15E respectively. Earning per share (EPS) of the company for the earnings for FY14E and FY15E is seen at Rs.14.02 and Rs.15.98 respectively. Net Sales and PAT of the company are expected to grow at a CAGR of 19% and 20% over 2012 to 2015E respectively. On the basis of EV/EBITDA, the stock trades at 2.20 x for FY14E and 2.01 x for FY15E. Price to Book Value of the stock is expected to be at 0.57 x and 0.50 x respectively for FY14E and FY15E. The fourth quarter witnesses a healthy increase in overall sales as well as profitability on account of powerful combination of exciting products, an enhanced store network and robust infrastructural Support system. We expect that the company surplus scenario is likely to continue for the next three years, will keep its growth story in the coming quarters also. We recommend 'BUY' in this particular scrip with a target price of Rs 52 for Medium to Long term investment," says Firstcall Research report.
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