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Buy Everest Ind; target of Rs 267: Firstcall Research

Firstcall Research is bullish on Everest Industries and has recommended buy rating on the stock with a target of Rs 267 in its February 4, 2013 research report.

February 06, 2013 / 02:00 PM IST
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Firstcall Research is bullish on Everest Industries and has recommended buy rating on the stock with a target of Rs 267 in its February 4, 2013 research report.
“Everest Industries (EIL) is one of India’s fastest growing building solutions company. Established in 1934, the company is one of the most respected and renowned business entities in India and has dominated the market. An Everest industry provides the world-class building solutions to meet construction requirements, in the Industrial, commercial and residential sectors. Historically, the company has provides rural shelters by making corrugated roofing sheets available to farmers at a competitive price. The company is poised to capitalize the opportunities in rural India where various housing and infrastructure initiatives are envisaged by the Government.”
“The company offers a complete range of building solutions which includes ceilings, walls, flooring, cladding, doors, roofing and pre-engineered steel buildings. These are produced at Everest's state-of-the-art with ISO: 14000 certified manufacturing facilities at Bhagwanpur, Kymore, Nashik, Coimbatore, Kolkata and Roorkee. With over 6000 retail points spread across the nation together with the strength of over 1285 highly qualified and experienced engineers, designers and technicians, Everest provides the building solutions that successfully meet the highest standards of quality and durability. After a successfully catering to the Indian market, Everest has widened its horizons in the international arena. With consistent exports to Europe, Africa, Australia and Asia, the company is set to scale new heights and establish a strong foundation in the global market. Banking on its 75 years of experience and highly sophisticated technology, it assures that all its products live up to its promise of strength, speed and safety.”
“Everest Industries Ltd a flagship of Everest Group, it offers roofing, ceiling, wall, flooring, cladding, door and pre-engineered steel buildings for the industrial, commercial and residential sectors. Reported its financial results for the quarter ended 31st Dec, 2012. The third quarter witnesses a healthy increase in overall sales as well as profitability on account of launching new products & existing products of the company. The company’s net profit raise to Rs.96.10 million against Rs.73.00 million in the corresponding quarter ending of previous year, an increase of 31.64%. Revenue for the quarter rose 22.79% to Rs.2581.40 million from Rs.2102.30 million, when compared with the prior year period. Reported earnings per share of the company stood at Rs.6.36 a share during the quarter, registering 31.38% increase over previous year period. Profit before interest, depreciation and tax is Rs.211.50 millions as against Rs.170.30 millions in the corresponding period of the previous year.”
“At the current market price of Rs 236, the stock P/E ratio is at 5.56 x FY13E and 4.71 x FY14E respectively. Earning per share (EPS) of the company for the earnings for FY13E and FY14E is seen at Rs.42.43 and Rs.50.14 respectively. Net Sales and PAT of the company are expected to grow at a CAGR of 18% and 23% over 2011 to 2014E respectively. On the basis of EV/EBITDA, the stock trades at 3.12 x for FY13E and 2.57 x for FY14E. Price to Book Value of the stock is expected to be at 1.14 x and 0.92 x respectively for FY13E and FY14E. We expect that the company surplus scenario is likely to continue for the next forthcoming years, will keep its growth story in the coming quarters also. We recommend ‘BUY’ in this particular scrip with a target price of Rs 267 for medium to long term investment,” says Firstcall Research report.

FIIs holding more than 30% in Indian cos

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To read the full report click on the attachment

first published: Feb 6, 2013 02:00 pm

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