Firstcall Research's report on Essel Propack
The Consolidated revenue for the quarter rose by 4.79% to Rs. 6117.30 million from Rs. 5837.80 million, when compared with the prior year period. Net profit increased by 66.09% to Rs. 454.10 million from Rs. 273.40 million, when compared with the prior year period. Reported earnings per share of the company stood at Rs. 2.89 a share during the quarter, registering 66.06% increased over previous year period. Profit before interest, depreciation and tax is Rs. 1129.20 millions as against Rs. 960.00 millions in the corresponding period of the previous year.
Outlook and Conclusion
At the current market price of Rs.128.70, the stock P/E ratio is at 12.62 x FY16E and 11.57 x FY17E respectively.
Earning per share (EPS) of the company for the earnings for FY16E and FY17E is seen at Rs. 10.20 and Rs. 11.12 respectively.
Net Sales and PAT of the company are expected to grow at a CAGR of 55% and 60% over 2014 to 2017E respectively.
On the basis of EV/EBITDA, the stock trades at 5.75 x for FY16E and 5.30 x for FY17E.
Price to Book Value of the stock is expected to be at 2.26 x and 2.01 x for FY16E and FY17E respectively.
"We recommend ‘BUY’ in this particular scrip with a target price of Rs 148 for Medium to Long term investment", says Firstcall Research Report.
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