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Last Updated : Aug 24, 2015 05:02 PM IST | Source: Moneycontrol.com

Buy Chaman Lal Setia; target Rs 215: Firstcall Research

Brokerage house Firstcall Research is bullish on Chaman Lal Setia Exports and has recommended buy rating on the stock with a target price of Rs 215, in its research report dated August 22, 2015.

 
 
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Firstcall Research's report on Chaman Lal Setia Exports

Chaman Lal Setia Exports Ltd incorporated as a Partnership firm in 1983, manufactures, markets, and sells basmati and parboiled rice in India.

In Q1 FY16, Net profit Jumps to 256.03% y-o-y of Rs.101.79 million against Rs.28.59 million in the corresponding quarter of previous year.

Revenue for the 1st quarter of FY16 stood at Rs. 1307.43 million as against Rs. 1289.46 million, when compared with the prior year period.

Operating profit is Rs. 166.93 million as against Rs. 53.64 million in the corresponding period of the previous year, increase by 211.20%.

Profit before tax (PBT) of the company increased by 256.04% y-o-y and stood at Rs. 154.20 million in Q1 FY16 compared to Rs. 43.31 million in Q1 FY15.

The company has reported an EPS of Rs. 10.77 for the 1st quarter of FY16 as against an EPS of Rs. 3.03 in the 1st quarter of FY15.

During the quarter, total Expenditure decreased by 8% to Rs. 212.48 million when compared to Rs. 1242.69 million in the corresponding quarter of previous year.

Net Sales and PAT of the company are expected to grow at a CAGR of 15% and 32% over 2014 to 2017E respectively.

Outlook And Conclusion

At the current market price of Rs. 189.10, the stock P/E ratio is at 5.13 x FY16E and 4.28 x FY17E respectively.

Earnings per share (EPS) of the company for the earnings for FY16E and FY17E are seen at Rs. 36.85 and Rs. 44.20 respectively.

Net Sales and PAT of the company are expected to grow at a CAGR of 15% and 32% over 2014 to 2017E respectively.

On the basis of EV/EBITDA, the stock trades at 3.44 x for FY16E 2.83 x for FY17E.

Price to Book Value of the stock is expected to be at 2.07 x and 1.64 x respectively for FY16E and FY17E.

We recommend ‘BUY’ in this particular scrip with a target price of Rs. 215.00 for Medium to Long term investment, says Firstcall Research research report.


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First Published on Aug 24, 2015 05:02 pm
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