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Last Updated : Feb 20, 2013 11:18 AM IST | Source: Moneycontrol.com

Buy Igarashi Motors; target Rs 76: Firstcall Research

Firstcall Research is bullish on Igarashi Motors and has recommended buy rating on the stock with a target price of Rs 76 in its February 19, 2013 research report.

 
 
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Firstcall Research is bullish on Igarashi Motors and has recommended buy rating on the stock with a target price of Rs 76 in its February 19, 2013 research report.


"Igarashi Motors is specialized in the design & manufacture of small, permanent magnet DC motors and gear motors has dedicated to providing the quality product & service to customers During the Second quarter, the robust growth of Net Profit is increased by 57.97% to Rs. 56.27 million. Igarashi Motors Ltd acquired new generation electric motor Business from leading omen/tier-1 combination for 5years. Igarashi Motors with substantial order Book for the torque actuator motors which will enable the sales to double in the next 4 years. Revenue for the quarter declined 0.10% to Rs.691.67 million from Rs. 692.35 million, when compared with the prior year period. The company outliners which are laid for the production lines with about 30% increased the productivity. Net Sales and PAT of the company are expected to grow at a CAGR of 16% and 53% over 2011 to 2014E respectively.


The company's net profit jumps to Rs.56.27 million against Rs.35.62 million in the corresponding quarter ending of previous year, an increase of 57.97%. Revenue for the quarter declined 0.10 % to Rs.691.67 million from Rs.692.35 million, when compared with the prior year period. Reported earnings per share of the company stood at Rs.2.76 a share during the quarter, registering 57.78% increase over previous year period. Profit before interest, depreciation and tax is Rs.132.92 millions as against Rs.107.97 millions in the corresponding period of the previous year.


At the current market price of Rs.67.70, the stock P/E ratio is at 6.02 x FY13E and 5.07 x FY14E respectively. Earning per share (EPS) of the company for the earnings for FY13E and FY14E is seen at Rs.11.25 and Rs.13.36 respectively. Net Sales and PAT of the company are expected to grow at a CAGR of 16% and 53% over 2011 to 2014E respectively. On the basis of EV/EBITDA, the stock trades at 2.78 x for FY13E and 2.32 x for FY14E. Price to Book Value of the stock is expected to be at 1.11 x and 0.93 x respectively for FY13E and FY14E. We recommend ‘BUY' in this particular scrip with a target price of Rs 76 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 Feb 20, 2013 11:18 am
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