Accumulate Opto Circuits; target Rs 330: Unicon Investment

12058 Investors following Opto Circuits. Share this News with them.

0

Like this story, share it with millions of investors on M3

Accumulate Opto Circuits; target Rs 330: Unicon Investment

Unicon Investment is bullish on Opto Circuits (India) (OPTC) and has recommended accumulate rating on the stock with a target price of Rs 330 in its May 31, 2011 research report.

Post your opinion here

 

0

Tweet

Share on Tumblr

RELATED NEWS Accumulate IVRCL; target of Rs 90: Unicon Investment Buy Coal India; target of Rs 438: Motilal Oswal Hold BGR Energy; target of Rs 493: ULJK Securities ALSO READ See previous views by Unicon Investment See what other Experts & Brokerages are saying about Opto Circuits See messages about Opto Circuits Opto Circuits BSE | NSE 30/05/12 Are Mutual Funds betting on Opto Circuits?

Unicon Investment is bullish on Opto Circuits (India) (OPTC) and has recommended accumulate rating on the stock with a target price of Rs 330 in its May 31, 2011 research report.

"Opto Circuits (India) Ltd (OPTC) outperformed the street expectations in Q4 FY11, registering a revenue growth of ~70% YoY to INR 5,633mn. Strong growth in topline was seen due to healthy contribution from recently acquired Cardiac Science USA (Cardiac Science develops, manufactures, and markets a family of advanced diagnostic and therapeutic cardiology devices and systems)."

"OPTC's non-invasive business grew by 22% compared to 55% in Cardiac Science in FY11. In invasive products, OPTC launched new products in developed markets while increasing the penetration in emerging markets. This segment observed 28% YoY growth in revenues to INR 3.2bn. EBITDA increased from INR 1,110mn to INR 1,190mn, up 7.3% YoY. EBITDA margin dropped by 1132bps YoY to 21.9% due to adverse product mix in legacy business and minor delays in margin ramp-up in Cardiac Science (CS) business. CS margin was hit by high payroll and administrative cost in FY11. Net Profit jumped by ~69% YoY to INR 1,117mn in Q4 FY11. Net Profit margin remained flat at 19.8% despite increase in other income and reduction in taxation."

"Opto Circuits (OPTC) has successfully restructured its Cardiac Science business. The management expects significant revenue contribution from this business going ahead. OPTC's subsidiary Eurocor recently launched various drug eluting ballons like Taxcor Plus, Dior, Freeway and Magical. We expect these products to register a growth of 25-30% in next three years. In noninvasives business growth would be maintained by increasing penetration of products. Stock is trading at 12.9x its FY12E earnings. Considering the prospects of organic and inorganic growth in OPTC we recommend Accumulate on the stock with a price target of INR 330," says Unicon Investment research report.

Shares held by Central Governments/State Governments

Disclaimer: The views and investment tips expressed by investment experts 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.

To read the full report click on the attachment