Buy VST Industries; target Rs 1404: Firstcall Research

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Buy VST Industries; target Rs 1404: Firstcall Research

Firstcall Research is bullish on VST Industries and recommended to buy the stock with a target price of Rs 1404 in its November 07, 2011 report.

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Firstcall Research is bullish on VST Industries and recommended to buy the stock with a target price of Rs 1404 in its November 07, 2011 report.

"VST Industries Ltd. has reported net profit of Rs 335.90 million for the quarter ended on Sep 30, 2011 as against Rs 240.10 million in the same quarter last year, an increase of 39.90%. It has reported net sales of Rs 1647.60 million for the quarter ended on September 30, 2010 as against Rs 1573.20 million in the same quarter last year, a rise of 4.73%. Total income grew by 7.49% to Rs 1716.80 million from Rs. 1597.10 million in the same quarter last year. During the quarter, it reported earnings of Rs 21.76 a share."

"At the current market price of Rs.1243.00, the stock is trading at 14.83 x FY12E and 13.02 x FY13E respectively. Earning per share (EPS) of the company for the earnings for FY12E and FY13E is seen at Rs. 83.79 and Rs. 95.46 respectively. Net Sales and PAT of the company are expected to grow at a CAGR of 15% and 33% over 2010 to 2013E respectively."

"On the basis of EV/EBITDA, the stock trades at 8.98 x for FY12E and 7.93 x for FY13E. Price to Book Value of the stock is expected to be at 4.92 x and 3.57 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 1404 for Medium to Long term investment, says Firstcall Research report.

Public holding more than 90% in Indian cos

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To read the full report click on the attachment