Buy Kopran; target Rs 15: Firstcall Research

Firstcall Research report on Kopran

"Kopran's net profit jumps to Rs. 40.60 millions against Rs. 31.00 millions in the corresponding quarter ending of previous year, an increase of 30.97 percent. Revenue for the quarter rose 38.07 percent to Rs. 767.40 millions from Rs. 555.80 millions, when compared with the prior year period. Reported earnings per share of the company stood at Rs. 1.04 a share during the quarter, registering 30.97  percent increase over previous year period. Profit before interest, depreciation and tax is Rs. 106.20 millions as against Rs. 78.80 millions in the corresponding period of the previous year."

Outlook and Conclusion: "At the current market price of Rs.13.15, the stock P/E ratio is at 3.48 x FY14E and 2.91 x FY15E respectively. Earning per share (EPS) of the company for the earnings for FY14E and FY15E is seen at Rs.3.78 and Rs.4.52 respectively. Net Sales and PAT of the company are expected to grow at a CAGR of 18 percent and 42 percent over 2012 to 2015E respectively. On the basis of EV/EBITDA, the stock trades at 1.22 x for FY14E and 1.06 x for FY15E. Price to Book Value of the stock is expected to be at 0.40 x and 0.38 x respectively for FY14E and FY15E. We recommend 'BUY' in this particular scrip with a target price of Rs.15.00 for Medium to Long term investment," says Firstcall Research report.

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