Firstcall Research is bullish on Ahmednagar Forgings and has recommended buy rating on the stock with a target price of Rs 116 in its June 17, 2013 research report.
Firstcall Research report on Ahmednagar Forgings
"Ahmednagar Forgings' net profit jumps to Rs.380.20 millions against Rs.322.30 millions in the corresponding quarter ending of previous year, an increase of 17.96%. Revenue for the quarter rose 0.05% to Rs.3301.80 millions from Rs.3300.30 millions, when compared with the prior year period. Reported earnings per share of the company stood at Rs.10.35 a share during the quarter, registering 17.96% increase over previous year period. Profit before interest, depreciation and tax is Rs.929.60 millions as against Rs.803.40 millions in the corresponding period of the previous year."
"Outlook and Conclusion: At the current market price of Rs.105.55, the stock P/E ratio is at 2.86 x FY13E and 2.65 x FY14E respectively. Earning per share (EPS) of the company for the earnings for FY13E and FY14E is seen at Rs.36.88 and Rs.39.79 respectively. Net Sales and PAT of the company are expected to grow at a CAGR of 14% and 10% over 2011 to 2014E respectively. On the basis of EV/EBITDA, the stock trades at 2.83 x for FY13E and 2.62 x for FY14E. Price to Book Value of the stock is expected to be at 0.44 x and 0.38 x respectively for FY13E and FY14E. 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 116 for Medium to Long term investment," says Firstcall Research report.
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