Buy Hanung Toys; target of Rs 215: A C Choksi

7483 Investors following Hanung Toys. Share this News with them.

0

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

Buy Hanung Toys; target of Rs 215: A C Choksi

A C Choksi is bullish on Hanung Toys and has recommended buy rating on the stock with a target of Rs 215 in its May 27, 2011 research report.

Post your opinion here

 

0

Tweet

Share on Tumblr

RELATED NEWS Buy UCO Bank; target of Rs 102: Aditya Birla Money Buy KPIT Cummins; target of Rs 203: KRChoksey Buy Adhunik Metaliks; target of Rs 130: Unicon Investment ALSO READ See previous views by A C Choksi See what other Experts & Brokerages are saying about Hanung Toys See messages about Hanung Toys Hanung Toys BSE | NSE 31/05/12 Are Mutual Funds betting on Hanung Toys?

A C Choksi is bullish on Hanung Toys and has recommended buy rating on the stock with a target of Rs 215 in its May 27, 2011 research report.

"Indian Toy Market is estimated at ~ Rs. 6000 crore and set to grow at 20 - 30%. Various factors are leading towards increase in demand for toys. Hanung Toys & Textiles Ltd (HTTL) has emerged as a niche market player and has a strong presence in the domestic and international markets. It is well poised to encash upon the opportunities and is expected to have a strong growth. HTTL has made capex plan of Rs 720 crore to be done over next 18 months for increasing toy/production capacities and going backwards for spinning. HTTL believes that upon completion of capex its sales will exceed Rs. 2,000 crore and textiles EBITDA to improve by 7 to 8%."

"HTTL has acquired a controlling stake in a U.S. company M/s. Cody Direct Corp. Company believes that this acquisition will lead to a strong growth in U.S. market and EBIDTA margins will also improve. HTTL has planned to expand its retail presence through the brand FUNLAND. It has planned to open about 400 stores including up to 150 Company Owned Franchisee Operated (COFO) stores and balance Franchisee Owned Franchisee Operated (FOFO) stores in the next three to four years. HTTL`s toys manufacturing units established in the NSEZ gets the benefits of duty free imports and single window clearance for imports/exports. Its new production units in Roorkee and NSEZ also enjoy 100% tax holiday for first five years."

"HTTL has good earnings prospects in both Soft toys and Home Furnishings business segments. Rising demand for toys, company`s expansions plan, its U.S. based company`s acquisition and its initiatives for increasing retail presence are some of the factors which are leading towards strong growth as well as earnings and profits of the company in the coming period. At the Current Market Price (CMP) of Rs.165.70 HTTL is trading at a P/E of 3.45. Based on growth prospects, we believe that for Financial year 2012, HTTL`s forward Earnings per share (EPS) to be Rs.54.26, thus we recommend a buy call on the stock at CMP of Rs 165.70 which is trading at only 3.05 x Financial year 2012 estimated EPS with a target price of Rs 215 giving a potential upside of 30 %," says A C Choksi research report.

FIIs holding more than 30% in Indian cos

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