Mar 14, 2013, 11.09 AM | Source: Moneycontrol.com
Firstcall Research is bullish on Ybrant Digital and has recommended buy rating on the stock with a target price of Rs 44 in its March 13, 2013 research report.
, Firstcall Research |
"Ybrant Digital is a Global Information Tech. Implementation and Outsourcing Services Provider to its clients in digital and software development industry. The company’s net sales registered a 130.09% increase and stood at a record Rs. 4237.72 million from Rs. 1841.77 million over the corresponding quarter last year. The company’s net profit registered a 185.99% increase and stood at a record Rs. 603.36 million from Rs. 210.97 million over the corresponding quarter last year. Ybrant Digital leads pilot campaigns on bespoke Facebook mobile ads for clients. Ybrant Digital generates over 1.5 billion searches and 34 billion impressions per month to service 150+ agencies & brands of over 2000+ advertisers & 6000+publishers across 140 countries. In 2012, Ybrant Digital surpassed newspaper as the 2nd largest advertising medium by value spent, after TV. Net Sales and PAT of the company are expected to grow at a CAGR of 72% and 87% over 2011 to 2014E respectively.
The company’s net profit jumps to Rs.603.36 million as against Rs.210.97 million in the corresponding quarter ending of previous year, an increase of 185.99%. Revenue for the quarter rose 130.09% to Rs.4237.72 million from Rs.1841.77 million, when compared with the prior year period. The EPS of the company is declined due to increase in equity capital and change of face value from Rs.10/- to Rs.2/- during a quarter. A reported earnings per share of the company is at Rs.1.27 a share during the quarter. Profit before interest, depreciation and tax stood to Rs.907.95 millions as against Rs.306.34 millions in the corresponding period of the previous year.
Outlook and Conclusion: At the current market price of Rs.38.00, the stock P/E ratio is at 14.80 x FY13E and 10.48 x FY14E respectively. Earning per share (EPS) of the company for the earnings for FY13E and FY14E is seen at Rs.5.00 and Rs.7.06 respectively. Net Sales and PAT of the company are expected to grow at a CAGR of 72% and 87% over 2011 to 2014E respectively. On the basis of EV/EBITDA, the stock trades at 10.11 x for FY13E and 7.31 x for FY14E. Price to Book Value of the stock is expected to be at 3.11 x and 2.40 x respectively for FY13E and FY14E. We recommend ‘BUY’ in this particular scrip with a target price of Rs 44 for Medium to Long term investment," says Firstcall Research report.
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