Buy Kemrock Industries; tgt of Rs 574: Firstcall Research

“Established in 1981, Kemrock Industries and Exports Limited (KIEL) is a fully integrated global leader in the manufacture of Fibre Reinforced Composite Materials. KIEL manufactures and exports FRP/GRP (Composite) Products for major industrial sectors such as aerospace, defense, renewable energy, wind energy, railways, chemical processing, oil and gas, water and waste water management, infrastructure, construction, electrical and electronics, marine, telecommunications. The State-of the-Art facility, located close to Vadodara in the western part of India, provides highquality engineered advanced composite solutions and reliable services, complying with customer specifications as well as national and international standards. The company operates using principles of Total Integrated Management (TIM), ensuring complete customer satisfaction. An end-to-end solution provider, it encompasses conceptual design, prototype development, testing, manufacturing, logistic support, installation and comprehensive after sales service.”

“Kemrock has established a reputation as a major supplier to key industries by manufacturing first quality material, consistently. In order to do that, a full and wide ranging Quality Assurance Team oversees the manufacture of products at Kemrock, ensuring complete traceability. The Integrated management system is certified under ISO 9001:2008, ISO 14001: 2004 and OSHAS 18001:2007. Kemrock is also proud to be India’s First and only IRIS Certified Company (IRIS - International Railway Industry Standard). Kemrock has the unique distinction of commissioning India's first Carbon Fibre Manufacturing facility to cater to Defence, Aerospace & Infrastructure Sectors.”

“Kemrock Industries & Exports Ltd. has reported net profit of Rs 154.94 million for the quarter ended on September 30, 2011 as against Rs 137.62 million in the same quarter last year, an increase of 12.59%. It has reported net sales of Rs 2377.17 million for the quarter ended on September 30, 2011 as against Rs 1692.70 million in the same quarter last year, a rise of 40.44%. Total income grew by 41.73% to Rs.2404.02 million from Rs.1696.23 million in the same quarter last year. During the quarter, it reported earnings of Rs 8.88 a share.”

“At the current market price of Rs.512.50, the stock is trading at 9.32 x FY12E and 7.70 x FY13E respectively. Earning per share (EPS) of the company for the earnings for FY12E and FY13E is seen at Rs.55.00 and Rs.66.55 respectively. Net Sales and PAT of the company are expected to grow at a CAGR of 27% and 30% over 2010 to 2013E respectively. On the basis of EV/EBITDA, the stock trades at 2.93 x for FY12E and 2.53 x for FY13E. Price to Book Value of the stock is expected to be at 1.19 x and 1.03 x respectively for FY12E and FY13E. We expect that the company will keep its growth story in the coming quarters also. We recommend ‘BUY’ in this particular scrip with a target price of Rs 574 for medium term investment,” says Firstcall Research report. 

Institutional holding more than 40% in Indian cos

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.