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Last Updated : Sep 08, 2015 01:55 PM IST | Source: Moneycontrol.com

Buy Centum Electronics; target of Rs 750: Firstcall

Brokerage house Firstcall Research is bullish on Centum Electronics and has recommended buy rating on the stock with a target price of Rs 750 in its research report dated September 05, 2015.

 
 
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Firstcall Research's report on Centum Electronics

Centum Electronics Ltd is a globally recognized electronics company with strong presence in the Defence & Aerospace, Space, Industrial, Medical and Telecom industry segments. The company has reported its financial results for the quarter ended 30th June, 2015. The company’s net profit Jumps to Rs. 876.87 million for the 1st quarter of the financial year 2016 as against Rs. 1008.10 million in the corresponding quarter of the previous year, Registered a growth of 29.64% y-o-y. In Q1 FY16, Net sale stood at Rs. 876.87 million compared to Rs. 1008.10 million in Q1 FY15. The company has reported an EBITDA of Rs. 170.97 million, increased by 1% over corresponding quarter of previous year. EPS of Rs. 6.69 for the 1st quarter as against an EPS of Rs. 5.22 in the corresponding quarter of the previous year.

OUTLOOK AND CONCLUSION

At the current market price of Rs.666.25, the stock P/E ratio is at 15.59 x FY16E and 13.48 x FY17E respectively.

Earning per share (EPS) of the company for the earnings for FY16E and FY17E is seen at Rs.42.75 and Rs.49.43 respectively.

Net Sales and PAT of the company are expected to grow at a CAGR of 19% and 67% over 2014 to 2017E respectively.

On the basis of EV/EBITDA, the stock trades at 7.46 x for FY16E and 6.63 x for FY17E.

Price to Book Value of the stock is expected to be at 3.96 x and 3.21 x respectively for FY16E and FY17E.

"We expect that the company surplus scenario is likely to continue for the next three years, will keep its growth story in the coming quarters also. We recommend ‘BUY’ in this particular scrip with a target price of Rs 750 for Medium to Long term investment", says Firstcall Research Report.

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First Published on Sep 8, 2015 01:55 pm
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