Buy Fineotex Chemical; target of Rs 150: Hem Securities
Hem Securities is bullish on Fineotex Chemical has recommended buy rating on the stock with a target price of Rs 150 in its research report dated August 05, 2021.
August 09, 2021 / 02:43 PM IST
An Edelweiss research report for Q4FY21 says road tonnage continued to improve, evident in e-way bill generation (up 6% QoQ) and improved core trucking rentals. “We estimate tonnage would increase by three–five percent for truckers. Asset-light plays Mahindra Logistics and TCI Express remain our preferred picks due to their ability to scale up/down as the environment demands,” the report said. Edelweiss is bullish on Blue Dart Express due to the pandemic-induced boom in e-commerce and its leaner cost structure. It has retained a ‘buy’ call on Mahindra Logistics, TCI Express and Blue Dart Express.
Hem Securities report on Fineotex Chemical
The Revenue from Operation for the Q1FY22 has increased by 108% to Rs 6327.57 Lakhs from Rs. 3038.71 Lakhs on Y-o-Y basis. The EBIDTA for the quarter has increased by 139% to Rs 981.87 Lakhs from Rs. 411.11 Lakhs on Y-o-Y basis & the Profit after tax (PAT) for the quarter has increased by 21.44% to Rs 947 Lakhs from Rs. 780 Lakhs on Y-o-Y basis.
Company is currently trading at 22.35X of FY23E EPS & 17.52x of FY24E EPS. With company’s joint venture with HealthGuard, appointment of new Chief Executive Officer & upcoming brownfield facility at Ambernath, Maharashtra , the business prospects are looking very strong.We maintain “BUY” on stock with upgraded price target of Rs 150/share.
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