Moneycontrol Be a Pro
Get App
Last Updated : May 17, 2018 04:52 PM IST | Source:

Accumulate Tribhovandas Bhimji Zaveri; target of Rs 120: Prabhudas Lilladher

Prabhudas Lilladher recommended accumulate rating on Tribhovandas Bhimji Zaveri with a target price of Rs 120 in its research report dated May 04, 2018.

Broker Research @moneycontrolcom
  • bselive
  • nselive
Todays L/H

Prabhudas Lilladher's research report on Tribhovandas Bhimji Zaveri

TBZ reported 9.6% SSG and Rs70mn PAT led by ~10% volume growth and improved footfall in wedding season. TBZ has incorporated a new marketing strategy whereby 1) making charges have been rationalised in specific segments like plain gold jewellery, premium and studded jewellery and 2) marketing campaign has been started to connect with consumers. TBZ Mgt has indicated 15 store openings in FY19 which includes 10 owned stores, indicating reasonable level of success with last year's 4 stores in Malls. Although the move is positive, we remain cautious as target of adding 30 stores in next two years (base of 37 stores) need support from good demand scenario. TBZ is back on the dividend list (7.5%) after a gap of 2 years, which shows Mgt confidence in growth and sustaining cash flows.  Balance sheet remains healthy with flat inventories and just 4% increase in debt.

We estimate 37% PAT CAGR over FY18-20 and value the stock at 20xFY20 EPS of Rs6.0 thus assigning target price of Rs120. Retain Accumulate.

For all recommendations report, click here

Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on are their own, and not that of the website or its management. advises users to check with certified experts before taking any investment decisions.

The Great Diwali Discount!
Unlock 75% more savings this festive season. Get Moneycontrol Pro for a year for Rs 289 only.
Coupon code: DIWALI. Offer valid till 10th November, 2019 .
First Published on May 17, 2018 04:52 pm
Follow us on
Available On
PCI DSS Compliant