Feb 17, 2017 10:47 AM IST | Source: Moneycontrol.com
Buy Emmbi Industries; target of Rs 180: KR Choksey
KR Choksey is bullish on Emmbi Industries has recommended buy rating on the stock with a target price of Rs 180 in its research report dated February 15, 2017.
KR Choksey's research report on Emmbi Industries
In Q3FY17, Emmbi Industries Ltd (EMMBI) reported net sales of INR 551.3 Mn which (was broadly in-line with our estimates of INR 571 Mn) increased by 4.27% Y-o-Y but declined marginally by 2.3% Q-o-Q. Net sales were lower by 3% than our estimate resulting out of demonetization affecting demand for company’s domestic business.
We recommend a “BUY” rating and assign a PE of ―12X on FY19E of INR ―15.2 to arrive at a target price ―180. At CMP of INR 128, EIL is currently trading at 20.6x FY17 EPS of INR 6.2 (vs. previous estimate of 7.2), 12x on FY18 EPS of INR 10.7 and 8.5x on FY19 EPS of INR 15.0.
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