Brokerage house Firstcall Research is bullish on Gillette India and has recommended buy rating on the stock with a target price of Rs 2200 in its September 03, 2013 research report.
Firstcall's report on Gillette India
Gillette India achieved a turnover of Rs. 3929.60 million for the 4th quarter of the current year 2012-13 as against Rs. 3364.90 millions in the corresponding quarter of the previous year. The company has reported an EBITDA of Rs. 382.70 millions and a net profit of Rs. 164.70 million against Rs. 137.20 million reported respectively in the corresponding quarter of the previous year. The company has reported an EPS of Rs. 5.05 for the 4th quarter as against an EPS of Rs. 4.21 in the corresponding quarter of the previous year.
Outlook and Conclusion: At the current market price of Rs.2089.00, the stock P/E ratio is at 74.21 x FY14E and 67.68 x FY15E respectively. Earning per share (EPS) of the company for the earnings for FY14E and FY15E is seen at Rs.28.15 and Rs.30.86 respectively. Net Sales and PAT of the company are expected to grow at a CAGR of 13 percent and 10 percent over 2012 to 2015E respectively. On the basis of EV/EBITDA, the stock trades at 37.54 x for FY14E and 34.13 x for FY15E. Price to Book Value of the stock is expected to be at 10.01 x and 9.60 x respectively for FY13E and FY14E. We recommend ‘BUY’ in this particular scrip with a target price of Rs 2200 for Medium to Long term investment," says Firstcall Research report.
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