Buy Capital First; target of Rs 482: Firstcall

Firstcall Research's report on Capital First
Capital First Ltd. is a provider of financial service across consumer and wholesale businesses, with aspirations to grow into a significant financial conglomerate has reported its financial results for the quarter ended 30th June, 2015. The company has achieved a turnover of Rs. 3981.50 million for the 1st quarter of the current year 2015-16 as against Rs. 3269.99 million in the corresponding quarter of the previous year. EBITDA of Rs. 2513.69 million in Q1 FY16, an increase of 12.04% against the corresponding period of last year. In Q1 FY16, net profit of Rs. 331.16 million against Rs. 208.45 million in the corresponding quarter of the previous year. The company has reported an EPS of Rs. 3.64 for the 1st quarter as against an EPS of Rs. 2.52 in the corresponding quarter of the previous year.

OUTLOOK AND CONCLUSIONAt the current market price of Rs. 419.30, the stock P/E ratio is at 26.42 x FY16E and 21.25 x FY17E respectively.

Earning per share (EPS) of the company for the earnings for FY16E and FY17E is seen at Rs.15.87 and Rs.19.73 respectively.

Net Sales and PAT of the company are expected to grow at a CAGR of 23% and 30% over 2014 to 2017E respectively.

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