Buy Esab India; target of Rs 440: Firstcall Research
Firstcall Research is bullish on Esab India and has recommended buy rating on the stock with a target of Rs 440 in its April 26, 2013 research report.
April 29, 2013 / 13:15 IST
Firstcall Research is bullish on Esab India and has recommended buy rating on the stock with a target of Rs 440 in its April 26, 2013 research report.
“ESAB India Limited (“the Company”) was incorporated on November 10, 1987 and commenced its business operations in July 1988. ESAB India Limited is owned 55.56% by the ESAB Group. The remainders of its shares are held widely. The company is listed on the stock exchanges of Mumbai and the National Stock Exchange. Today, ESAB India is one of the leading suppliers of welding and cutting products in the country. ESAB products are now an integral part of industries like Shipbuilding, Petrochemical, Construction, Transport, Offshore, Energy and Repair and Maintenance. ESAB India's initiative on Total Quality Management has resulted in ISO 9000 and ISO 14000 certifications for four of its principal manufacturing facilities located at Kolkata, Chennai and Nagpur.”“ESAB India Ltd achieved a turnover of Rs. 1110.20 million for the 1st quarter of the current year 2013 as against Rs. 1346.90 millions in the corresponding quarter of the previous year. The company has reported an EBITDA of Rs. 157.10 millions and a net profit of Rs. 91.90 million against Rs. 81.80 million reported respectively in the corresponding quarter of the previous year. The company has reported an EPS of Rs. 5.97 for the 1st quarter as against an EPS of Rs. 5.32 in the corresponding quarter of the previous year.” “At the current market price of Rs 400, the stock P/E ratio is at 15.10 x CY13E and 14.13 x CY14E respectively. Earning per share (EPS) of the company for the earnings for CY13E and CY14E is seen at Rs.26.50 and Rs.28.31 respectively. On the basis of EV/EBITDA, the stock trades at 8.87 x for CY13E and 8.33 x for CY14E. Price to Book Value of the stock is expected to be at 2.22 x and 1.92 x respectively for CY13E and CY14E. We recommend ‘BUY’ in this particular scrip with a target price of Rs 440 for medium to long term investment,” says Firstcall Research report. Public holding more than 90% in Indian cos 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.
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