Buy Godfrey Phillips; target Rs 4082: Firstcall Research
Firstcall Research is bullish on Godfrey Phillips and has recommended buy rating on the stock with a target price of Rs 4082 in its May 09, 2012 research report.
Firstcall Research is bullish on Godfrey Phillips and has recommended buy rating on the stock with a target price of Rs 4082 in its May 09, 2012 research report.
"Godfrey Phillips is the one of largest player in the Indian cigarette industry with an annual turnover of over Rs. 3000 corers 2010-11). During the quarter ended, the growth of Net Profit is increased by 22.26% to Rs. 459 Net Sales and PAT of the company are expected to grow at a CAGR of 15% and 25% over 2010 to 2013E respectively. The company is planning to expand its production capacity by setting up manufacturing facility in Bengal. The company has a wide network of over 500 distributors and 800,000 retail outlets in the country.""The company has reported net profit of Rs 459.10 million for the quarter ended on December.31, 2011 as against 375.50 million in the same quarter last year, an increase of 22.26%. It has reported net sales of Rs 4820.60 million for the quarter ended on December 30, 2011 as against Rs 4246.90 million in the same quarter last year, a rise of 13.51%. Total income grew by 14.16% to Rs 4910.30 million from Rs.4301.30 million in the same quarter last year. During the quarter, it reported earnings of Rs 44.14 a share.""At the current market price of Rs.3549.80, the stock is trading at 18.54 x FY12E and 16.15 x FY13E respectively. Earnings per share (EPS) of the company for the earnings for FY12E and FY13E are seen at Rs.191.45 and Rs.219.83 respectively. Net Sales and PAT of the company are expected to grow at a CAGR of 14% and 24% over 2010 to 2013E respectively. On the basis of EV/EBITDA, the stock trades at 18.18 x for FY12E and 18.46 x for FY13E. Price to Book Value of the stock is expected to be at 3.74 x and 3.04 x respectively for FY12E and FY13E. We expect that the company will keep its growth story in the coming quarters also. We recommend ‘BUY’ in this particular scrip with a target price of Rs 4082 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. 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!
