Sintex Plastics' cash profit is expected to help deleverage its balance sheet, the research house said.
Phillip Capital has initiated coverage with Buy rating on Sintex Plastics Technology and set a target price at Rs 145, implying a potential upside of 85 percent. The stock rallied as much as 6.7 percent intraday Wednesday.
The subsidiary of Sintex Industries is in strong position to capitalise on economic recovery and growth in retail, warehousing and cold chain post GST.
Sintex Plastics Technology operates under two divisions - custom moulding solutions and building products & solutions (water storage tanks, prefab and construction for mass housing).
The research house sees stable and sustainable growth in custom moulding segment and expects prefab business to grow on government spending on healthcare, education, and sanitation.
Phillip Capital expects revenue/EBITDA/net profit to grow at a CAGR of 9/6/10 percent over FY17-20.
Sintex Plastics' cash profit is expected to help deleverage its balance sheet, the research house said.At 12:32 hours IST, the stock price was quoting at Rs 79.90, up Rs 2.10, or 2.70 percent on the BSE.Get access to India's fastest growing financial subscriptions service Moneycontrol Pro for as little as Rs 599 for first year. Use the code "GETPRO". Moneycontrol Pro offers you all the information you need for wealth creation including actionable investment ideas, independent research and insights & analysis For more information, check out the Moneycontrol website or mobile app.