Feb 26, 2013, 10.47 AM IST | Source: Moneycontrol.com

Buy Pacific Industries; target of Rs 147: Firstcall

Firstcall Research is bullish on Pacific Industries and has recommended buy rating on the stock with a target of Rs 147 in its February 25, 2013 research report.

Firstcall Research is bullish on Pacific Industries and has recommended buy rating on the stock with a target of Rs 147 in its February 25, 2013 research report.

“Pacific Industries Ltd. was established in 1989 as a 100percent Export Oriented Unit and during the last in two decades it has build solid reputation in supplying fine, high quality material to important markets and major international projects around the world. Pacific Industries Limited is one of the biggest quarry owners and processors of natural stones in India. As a 100percent EOU (Export Oriented Unit) an important investment in the dynamic extraction of maximum varieties of Granite, Marble and other natural stones from their own mines spread across India. The company’s products are Blocks, Slabs, and Tiles & Cut to size. It also pioneers in India to detect and explore Katni Beige marbles.”

“The company’s net profit jumps to Rs.28.24 millions against Rs.13.13 millions in the corresponding quarter ending of previous year, an increase of 115.08percent. Revenue for the quarter rose 55.49percent to Rs.234.53 millions from Rs.150.83 millions, when compared with the prior year period. Reported earnings per share of the company stood at Rs.20.89 a share during the quarter, registering 115.08percent increase over previous year period. Profit before interest, depreciation and tax is Rs.43.43 millions as against Rs.23.75 millions in the corresponding period of the previous year.”

“At the current market price of Rs.130.00, the stock P/E ratio is at 1.54 x FY13E and 1.12 x FY14E respectively. Earning per share (EPS) of the company for the earnings for FY13E and FY14E is seen at Rs.84.20 and Rs.116.07 respectively. Net Sales and PAT of the company are expected to grow at a CAGR of 28% and 61% over 2011 to 2014E respectively. On the basis of EV/EBITDA, the stock trades at 1.02 x for FY13E and 0.77 x for FY14E. Price to Book Value of the stock is expected to be at 3.38 x and 2.98 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.147 for medium to long term investment,” says Firstcall Research report.

Public holding more than 90% in Indian cos

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