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.

Buy Emmbi Industries; target of Rs 180: KR Choksey

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.

Outlook

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.

For all recommendations, click here

Disclaimer:
The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
Sections
Follow us on
Available On