Buy Indian Hume Pipe; target of Rs 105: Firstcall Research

Firstcall Research report on Indian Hume Pipe:

At the current market price of Rs 95.50, Indian Hume Pipe P/E ratio is at 8.05 x FY14E and 6.48 x FY15E respectively.

Earning per share (EPS) of the company for the earnings for FY14E and FY15E is seen at Rs.11.86 and Rs 14.74 respectively.

Net Sales and PAT of the company are expected to grow at a CAGR of 20% and 59% over 2012 to 2015E respectively.

On the basis of EV/EBITDA, the stock trades at 5.38 x for FY14E and 4.90 x for FY15E.

Price to Book Value of the stock is expected to be at 0.92 x and 0.88 x respectively for FY14E and FY15E.

We recommend ‘BUY’ in this particular scrip with a target price of Rs 105 for Medium to Long term investment.

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