Firstcall Research is bullish on Agro Tech Foods and has recommended buy rating on the stock with a target of Rs 652 in its October 21, 2014 research report.
Firstcall Research report on Agro Tech Foods
“Agro Tech Foods Ltd (ATFL) was incorporated on November 21, 1986 and obtained the certificate of commencement of business on January 9, 1986. The company has been promoted by C.N. Balu. Agro Tech Foods Ltd (ATFL) and is a public limited company engaged in the business of marketing food and food ingredients to consumers and institutional customers. The company is affiliated to ConAgra Foods Inc. of USA, which are one the world’s largest food companies. ConAgra is one of the leading food services company in the US with a variety of popular brands which cater to the consumers in retail packaged form as well as through the catering industry. The food service business in India is supplying food products such as Lamb Weston, oils, popcorn to the hotels, restaurants and catering establishments.”
“At the current market price of Rs. 582.10, the stock P/E ratio is at 31.43 x FY15E and 28.82 x FY16E respectively. Earning per share (EPS) of the company for the earnings for FY15E and FY16E is seen at Rs.18.52 and Rs.20.20 respectively. Net Sales and PAT of the company are expected to grow at a CAGR of 5% and 6% over 2013 to 2016E respectively. On the basis of EV/EBITDA, the stock trades at 20.49 x for FY15E and 18.18 x for FY16E. Price to Book Value of the stock is expected to be at 4.34 x and 3.77 x respectively for FY15E and FY16E. We recommend ‘BUY’ in this particular scrip with a target price of Rs.652.00 for Medium to Long term investment,” says Firstcall Research report.
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