Buy Captain Polyplast; target of Rs 56: Khambatta Securities
Khambatta Securities is bullish on Captain Polyplast has recommended buy rating on the stock with a target price of Rs 56 in its research report dated Jun 04, 2021.
June 08, 2021 / 06:42 PM IST
An Edelweiss research report for Q4FY21 says road tonnage continued to improve, evident in e-way bill generation (up 6% QoQ) and improved core trucking rentals. “We estimate tonnage would increase by three–five percent for truckers. Asset-light plays Mahindra Logistics and TCI Express remain our preferred picks due to their ability to scale up/down as the environment demands,” the report said. Edelweiss is bullish on Blue Dart Express due to the pandemic-induced boom in e-commerce and its leaner cost structure. It has retained a ‘buy’ call on Mahindra Logistics, TCI Express and Blue Dart Express.
Khambatta Securities' research report on Captain Polyplast
Captain Polyplast Limited (CPL) is a micro-irrigation solutions provider and manufacturer/supplier of micro-irrigation systems (MIS). A key driver of the Rs 6,000 crore-worth micro-irrigation industry is favourable government policies including subsidies on MIS. The very low of penetration of MIS in India (5.5%) presents robust growth opportunities. With a projected life of 7 years for MIS, the penetrated section of the micro-irrigation market also presents opportunities driven by replacement demand.
The CPL stock currently trades at an attractive forward P/E level of 11.7x FY23E EPS. Assigning a target multiple of 17.0x FY23E EPS, our valuation generates a price target of Rs 56, informing a BUY rating with an upside potential of 45%.
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