Buy FDC; target Rs 91: Firstcall Research
Brokerage house Firstcall Research is bullish on FDC and has recommended buy rating on the stock with a target price of Rs 91 in its September 18, 2013 research report.
September 24, 2013 / 13:00 IST
Firstcall Research report on FDC
"FDC achieved a turnover of Rs. 2082.50 million for the 1st quarter of the current year 2013-14 as against Rs. 2038.66 millions in the corresponding quarter of the previous year. The company has reported an EBITDA of Rs. 623.85 millions and a net profit of Rs. 430.81 million against Rs. 406.49 million reported respectively in the corresponding quarter of the previous year. The company has reported an EPS of Rs. 2.42 for the 1st quarter as against an EPS of Rs. 2.22 in the corresponding quarter of the previous year."Outlook and Conclusion: "At the current market price of Rs.83.50, the stock P/E ratio is at 8.67 x FY14E and 7.93 x FY15E respectively. Earning per share (EPS) of the company for the earnings for FY14E and FY15E is seen at Rs.9.63 and Rs.10.53 respectively. Net Sales and PAT of the company are expected to grow at a CAGR of 8 percent and 12 percent over 2012 to 2015E respectively. On the basis of EV/EBITDA, the stock trades at 5.90 x for FY14E and 5.38 x for FY15E. Price to Book Value of the stock is expected to be at 1.57 x and 1.31 x respectively for FY14E and FY15E. 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 91 for Medium to Long term investment," says Firstcall Research report.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. 
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