Buy Godfrey Phillips; target Rs 2999: Firstcall Research
Firstcall Research is bullish on Godfrey Phillips India and has recommended buy rating on the stock with a target price of Rs 2999 in its June 13, 2013 research report.
June 17, 2013 / 13:34 IST
Firstcall Research report on Godfrey Phillips India
Godfrey Phillips's net profit jumps to Rs. 597.90 million against Rs. 419.90 million in the corresponding quarter ending of previous year, an increase of 42.39 percent. Revenue for the quarter rose 7.31 percent to Rs. 6057.70 million from Rs. 5644.80 million, when compared with the prior year period and reported earnings per share of the company stood at Rs. 57.49 a share during the quarter, registering 42.39 percent increase over previous year period. Profit before interest, depreciation and tax is Rs. 1123.00 millions as against Rs. 980.60 millions in the corresponding period of the previous year.Outlook and Conclusion: The global economy is indicating sign of recovery and comforting sign was a relatively better performance by Indian Economy. Indian Cigarette market has shown a growth of 5 percent and 11 percent in Value and segment is likely to grow largely in premium and economy segments. and concerted efforts by the government towards development exports were lower as compared to last.At the current market price of Rs.2726.50, the stock P/E ratio is at 14.55 x FY14E and 12.85 x FY15E respectively.Earning per share (EPS) of the company for the earnings for FY14E and FY15E is seen at Rs.187.35 and Rs.212.23 respectively.Net Sales and PAT of the company are expected to grow at a CAGR of 9 percent and 7 percent over 2012 to 2015E respectively.On the basis of EV/EBITDA, the stock trades at 7.49 x for FY14E and 6.77 x for FY15E.Price to Book Value of the stock is expected to be at 2.40 x and 2.18 x respectively for FY14E and FY15E. The Company Plans to continue the momentum and grow further by venturing into new markets and categories - and by leveraging and further building upon technology and back- end infrastructure to support the engines of growth.Godfrey Phillips foray into retail business through twenty four seven convenience stores is making steady progress and expects to more than double this number during the current year.During the year company has added many international buyers to Tea segment portfolio by developed new markets world wide."The third quarter witnesses a healthy increase in overall sales as well as profitability on account of powerful combination of exciting products, an enhanced store network and robust infrastructural Support system. We expect that the company surplus scenario is likely to continue for the next three years, will keep its growth story in the coming quarters also. We recommend 'BUY' in this particular scrip with a target price of Rs 2999 for Medium to Long term investment," says Firstcall Research report. Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions. 
Read More
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
