Feb 17, 2017 02:47 PM IST | Source: Moneycontrol.com
Buy Indo Count Industries; target of Rs 202: Systematix
Systematix is bullish on Indo Count Industries has recommended buy rating on the stock with a target price of Rs 170 in its research report dated February 16, 2017.
Systematix's research report on Indo Count Industries
Indo Count’s (ICNT) 3QFY17 net revenue remained flat yoy but de-grew by 12% qoq to Rs5bn (8% below estimate). The muted revenue growth was mainly due to extension of summer, elections and holiday season in US. EBITDA stood at Rs1bn, down 11/13% yoy/qoq, while OPM was down by 270bps and stood at 20.3% (20bps lower than estimate), mainly due to an increase in employee and other expenses.
We estimate ICNT’s revenue/net profit to post a CAGR of 10/14% during FY16-19e. We revise the target price to Rs 202 (earlier Rs 208), valued at 11x (average EPS for FY18e and FY19e) and maintain a Buy rating.
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