Buy Wheels India; target of Rs 316: Firstcall Research

1242 Investors following Wheels. Share this News with them.

0

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

Buy Wheels India; target of Rs 316: Firstcall Research

Firstcall Research is bullish on Wheels India and has recommended buy rating on the stock with a target of Rs 316 in its July 20, 2011 research report.

Post your opinion here

 

0

Tweet

Share on Tumblr

RELATED NEWS Buy PTC India Fin; target of Rs 25.8: Aditya Birla Money Buy JK Lakshmi Cement: PPFAS Angel Broking neutral on Blue Star ALSO READ See previous views by Firstcall Research See what other Experts & Brokerages are saying about Wheels See messages about Wheels Wheels BSE | NSE 29/05/12 Are Mutual Funds betting on Wheels?

Firstcall Research is bullish on Wheels India and has recommended buy rating on the stock with a target of Rs 316 in its July 20, 2011 research report.

"Wheels India Limited engages in the manufacture and sale of automotive components in India and internationally. The company exports its products to North America, Europe, the Asia Pacific, and South Africa. Net Sales and PAT of the company are expected to grow at a CAGR of 18% and 44% over 2010 to 2013E respectively. During the quarter, the company has reported Net Profit increased to Rs 125.50 million from Rs 35.80 million in previous year same quarter. The Company has recommended a dividend of Rs 6.50 per share for the year 2010-11. Total revenue for the year stood at Rs 17021.60mn from Rs 12530.00 which is 36% increased than that of a year ago."

"Wheels India Ltd disclosed results for the quarter ended March 2011. Net sales for the quarter moved up 20% to Rs 4752.00 million as compared to Rs 3948.40 million during the corresponding quarter last year. During the quarter, the company has reported Net Profit increased to Rs 125.50 million from Rs 35.80 million in previous year same quarter. The Basic EPS of the company stood at Rs 12.72 for the quarter ended March 2011."

"At the current market price of Rs 280, the stock is trading at 8.77 x FY12E and 7.18 x FY13E respectively. Price to Book Value of the stock is expected to be at 1.11 x and 0.96 x respectively for FY12E and FY13E. Earning per share (EPS) of the company for the earnings for FY12E and FY13E is seen at Rs 31.93 and Rs 38.98 respectively. Net Sales and PAT of the company are expected to grow at a CAGR of 18% and 44% over 2010 to 2013E respectively. During the quarter, the company has reported Net Profit increased to Rs 125.50 million from Rs 35.80 million in previous year same quarter. The Company has recommended a dividend of Rs 6.50 per share for the year 2010-11. Total revenue for the year stood at Rs 17021.60mn from Rs 12530 which is 36% increased than that of a year ago. On the basis of EV/EBITDA, the stock trades at 1.92 x for FY12E and 1.73 x for 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 316 for Medium to Long term investment," says Firstcall 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