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    HomeNewsBusinessStocksBuy Grindwell Norton; target of Rs 390: Edelweiss

    Buy Grindwell Norton; target of Rs 390: Edelweiss

    Edelweiss is bullish on Grindwell Norton has recommended buy rating on the stock with a target price of Rs 390 in its research report dated March 01, 2017.

    March 02, 2017 / 13:34 IST

    Edelweiss' report onGrindwell Norton

    Grindwell Norton’s (GWN) Q3FY17 revenue (INR 3.1bn) grew by strong 16% YoY, 3% above our expectations amid tough market conditions. EBITDA grew 4% to INR 440mn, but 2% below our expectations as EBITDA margin dipped 153bps YoY to 14.0% on higher employee cost and other expenditure.

    Outlook

    On strong product portfolio of 30,000 SKUs with 30% revenue contribution from new products, wide distribution network, benefits of strong parentage, and expected 339bps expansion in RoE to 20%, we upgrade to ‘BUY’ with TP of INR 390, based on 25x FY19E EPS.

    For all recommendations, click hereDisclaimer: 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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    first published: Mar 2, 2017 01:34 pm

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