Buy D P Abhushan; target of Rs 92: Arihant Capital
Arihant Capital is bullish on D P Abhushan has recommended buy rating on the stock with a target price of Rs 92 in its research report dated July 02, 2020.
July 03, 2020 / 04:44 PM IST
Arihant Capital 's research report on D P Abhushan
Kataria family promoted D. P. Abhushan Ltd (DPAL) is engaged into the retail business of Gold and Diamond Jewellery & Ornaments. At present, company has four showrooms situated at various places from where it operates its Jewellery stores. Company has high growth potential in organised Indian jewellery sector backed by : 1) Strong Brand image; 2) Store Expansion plan 3) Improving gross margins due to better sales mix and lower cost of sales. We estimate DPAL to record PAT CAGR of 12% over the period of FY20-22E backed by improvement in gross margin. FY21 performance of the company will be impacted on account of lower sales due to Covid-19 outbreak.
However, margins improvement is a silver lining. We initiate coverage on DPAL with ‘Buy’ rating having a target price of Rs 92, which gives a potential upside of 57%.
For all recommendations report, click here
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