Buy Chambal Fertilisers; target of Rs 72: Firstcall

Trade

• Watchlist
• Portfolio
• Message
• Set Alert

 

 

live

• bselive
• nselive

Volume

Todays L/H

More

×

Firstcall Research's report on Chambal Fertilisers and ChemicalsNet profit grew by 81.10% to Rs. 1463.20 million from Rs. 807.96 million, when compared with the prior year period. Net sales for the quarter rose by 22.22% y-o-y to Rs. 24402.32 million from Rs. 19966.39 million, when compared with the prior year period. Reported earnings per share of the company stood at Rs. 3.52 a share during the quarter as compared to Rs. 1.94 over previous year period. Profit before interest, depreciation and tax is Rs. 2805.98 million as against Rs. 2102.71 million in the corresponding period of the previous year, grew by 33.45% y-o-y.Outlook and ConclusionAt the current market price of Rs. 61.50, the stock P/E ratio is at 5.74 x FY16E and 4.95 x FY17E respectively.Earning per share (EPS) of the company for the earnings for FY16E and FY17E is seen at Rs. 10.71 and Rs. 12.43 respectively.Net Sales and PAT of the company are expected to grow at a CAGR of 11% and 14% over 2014 to 2017E respectively.On the basis of EV/EBITDA, the stock trades at 6.16 x for FY16E and 5.35 x for FY17E.Price to Book Value of the stock is expected to be at 0.95 x and 0.83 x respectively for FY16E and FY17E."We recommend ‘BUY’ in this particular scrip with a target price of Rs 72 for Medium to Long term investment", says Firstcall Research ReportFor all recommendations, click here Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

Read More