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Last Updated : Mar 15, 2013 12:08 PM IST | Source: Moneycontrol.com

Buy Cords Cable Inds; target Rs 23: Firstcall Research

Firstcall Research is bullish on Cords Cable Industries and has recommended buy rating on the stock with a target price of Rs 23 in its March 14, 2013 research report.

 
 
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Firstcall Research is bullish on Cords Cable Industries and has recommended buy rating on the stock with a target price of Rs 23 in its March 14, 2013  research report.


"Cords Cable Industries is in business of providing cost-effective & quality solutions for electrical connectivity requirements. The company’s net sales registered a 1.37% increase and stood at a record Rs. 804.16 million from Rs. 793.32 million over the corresponding quarter last year. The company’s net profit registered a 16.38% increase and stood at a record Rs. 12.29 million from Rs. 10.56 million over the corresponding quarter last year. Cords Cable Industries has bagged an Export Order Valuing Over U.S. $2.18 million from its worldwide recognized French Customer for Supplies to the state of Kuwait. During the year FY11-12, Credit Analysis & Research Ltd. has re-assigned “CARE BBB+” & “A3+” rating to Long Term & Short Term Bank facilities of the Company. The company has International approval for LT Power cable, control cable, instrumentation cable, signaling cable, communication cable & thermocouple cable from Tatweer petroleum, kingdom of Bahrain". Net Sales and PAT of the company are expected to grow at a CAGR of 12% and 9% over 2011 to 2014E respectively.


The company net profit jumps to Rs.12.29 million against Rs.10.56 million in the corresponding quarter ending of previous year, an increase of 16.38%. Revenue for the quarter increase 1.37% to Rs.804.16 million from Rs.793.32 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 16.38% increase over previous year period. Profit before interest, depreciation and tax stood to Rs.89.35 millions as against Rs.81.83 millions in the corresponding period of the previous year.


Outlook and Conclusion: At the current market price of Rs.20.50, the stock P/E ratio is at 3.78 x FY13E and 3.38 x FY14E respectively. Earning per share (EPS) of the company for the earnings for FY13E and FY14E is seen at Rs.5.43 and Rs.6.06 respectively. Net Sales and PAT of the company are expected to grow at a CAGR of 12% and 9% over 2011 to 2014E respectively. On the basis of EV/EBITDA, the stock trades at 2.29 x for FY13E and 2.09 x for FY14E. Price to Book Value of the stock is expected to be at 0.23 x and 0.21 x respectively for FY13E and FY14E. We recommend ‘BUY’ in this particular scrip with a target price of Rs 23 for Medium to Long term investment," says Firstcall Research report.


Bodies Corporate holding more than 50% in Indian cos


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To read the full report click on the attachment



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First Published on Mar 15, 2013 12:08 pm
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