Buy Neo Corp; target of Rs 64: Firstcall Research

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26 Aug, 2025 12:21

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Firstcall Research's research report on Neo CorpNeo Corp International Ltd is a manufacturer & exporter of the plastic woven & Knitted products.The company’s net sales registered a growth of 46.07% y-o-y and stood at Rs. 2116.90 million in 1st quarter of FY16 when compared to Rs. 1449.20 million in the corresponding quarter of previous year.In Q1 FY16, Net profit stood to Rs. 95.50 million an increase of 48.29% against Rs. 64.40 million in Q1 FY15.Operating profit is Rs. 245.30 million in Q1 FY16 as against Rs. 169.80 million in the corresponding period of the previous year, registering a growth of 44.46%.Profit before tax (PBT) at Rs. 119.40 million in Q1 FY16 compared to Rs. 90.50 million in Q1 FY15, registered a growth of 31.93% y-o-y.EPS of the company stood at Rs. 2.51 in Q1 FY16 against Rs. 1.69 in the corresponding quarter of the previous year, grew by 48.29%.Net Sales and PAT of the company are expected to grow at a CAGR of 25% and 28% over 2014 to 2017E respectively.Outlook and Conclusion At the current market price of Rs. 55.50, the stock P/E ratio is at 5.74 x FY16E and 4.95 x FY17E respectively.Earning per share (EPS) of the company for the earnings for FY16E and FY17E is seen at Rs.9.67 and Rs.11.22 respectively.Net Sales and PAT of the company are expected to grow at a CAGR of 25% and 28% over 2014 to 2017E respectively.On the basis of EV/EBITDA, the stock trades at 4.24 x for FY16E and 3.77 x for FY17E. Price to Book Value of the stock is expected to be at 0.65 x and 0.58 x for FY16E and FY17E respectively.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.64.00 for Medium to Long term investment, says Firstcall Research report.For all recommendations, click here 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.

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