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Last Updated : Apr 04, 2013 11:38 AM IST | Source: Moneycontrol.com

Buy Tilaknagar Industries; target Rs 71: Firstcall Research

Firstcall Research is bullish on Tilaknagar Industries and has recommended buy rating on the stock with a target price of Rs 71 in its April 03, 2013 research report.

 
 
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Firstcall Research is bullish on Tilaknagar Industries and has recommended buy rating on the stock with a target price of Rs 71 in its April 03, 2013 research report.


"Tilaknagar Industries' net sales registered a 22.62 percent increase and stood at a record Rs. 1465.98 million from Rs. 1195.53 million over the corresponding quarter last year. The company's net profit registered an 18.35 percent increase and stood at a record Rs. 130.42 million from Rs. 110.20 million over the corresponding quarter last year. The company has reported an EPS of Rs. 1.08 for the 3rd quarter as against an EPS of Rs. 0.95 in the corresponding quarter of the previous year. TI currently holds more than 60 per cent of the brandy market in South India. Premium brands such as Courrier Napolean Green is now extended to new states such as Karnataka, Kerala, Tamil Nadu, Goa, Sikkim and Puducherry. Net Sales and PAT of the company are expected to grow at a CAGR of 22 percent and 20 percent over 2011 to 2014E respectively.


The company's net profit jumps to Rs.130.42 million against Rs.110.20 million in the corresponding quarter ending of previous year, an increase of 18.35 percent. Revenue for the quarter rose 22.62 percent to Rs.1465.98 million from Rs.1195.53 million, when compared with the prior year period. Reported earnings per share of the company stood at Rs.1.08 a share during the quarter, registering 12.57 percent increase over previous year period. Profit before interest, depreciation and tax is Rs.390.29 millions as against Rs.373.77 millions in the corresponding period of the previous year.


Outlook and Conclusion: At the current market price of Rs.62.70, the stock P/E ratio is at 15.18 x FY13E and 12.60 x FY14E respectively. Earning per share (EPS) of the company for the earnings for FY13E and FY14E is seen at Rs.4.13 and Rs.4.98 respectively. Net Sales and PAT of the company are expected to grow at a CAGR of 22 percent and 20 percent over 2011 to 2014E respectively. On the basis of EV/EBITDA, the stock trades at 4.97 x for FY13E and 4.41 x for FY14E. Price to Book Value of the stock is expected to be at 1.70 x and 1.50 x respectively for FY13E and FY14E. We recommend 'BUY' in this particular scrip with a target price of Rs 71 for Medium to Long term investment," says Firstcall Research report.


FIIs holding more than 30% in Indian cos


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First Published on Apr 4, 2013 11:38 am
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