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Buy GSFC; target of Rs 90: Firstcall Research

Brokerage house Firstcall Research is bullish on Gujarat State Fertilizers & Chemicals (GSFC) and has recommended buy rating on the stock with a target price of Rs 90 in its research report dated April 22, 2015.

July 31, 2015 / 20:21 IST
     
     
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    Firstcall Research's report on Gujarat State Fertilizers & Chemicals (GSFC)

    GSFC incorporated in the year 1962, is engaged in manufacturing of fertilizers and industrial products has reported its financial results for the quarter ended 31 DECEMBER, 2014. The company’s net profit stood at Rs. 1034.70 million from Rs. 1012.00 million in the corresponding quarter ending of previous year, an increase of 2.24%. Revenue for the quarter decreased by 10.22% to Rs. 13093.90 million from Rs. 14584.00 million, when compared with the prior year period. Reported earnings per share of the company stood at Rs. 2.60 a share during the quarter as against Rs. 2.54 over previous year period. Profit before interest, depreciation and tax is Rs. 1763.90 million as against Rs. 1897.10 million in the corresponding period of the previous year.

    OUTLOOK AND CONCLUSION

    At the current market price of Rs. 79.70, the stock P/E ratio is at 6.77 x FY15E and 6.11 x FY16E respectively.

    Earnings per share (EPS) of the company for the earnings for FY15E and FY16E are seen at Rs. 11.78 and Rs. 13.04 respectively.

    On the basis of EV/EBITDA, the stock trades at 4.05 x for FY15E and 3.49 x for FY16E.

    Price to Book Value of the stock is expected to be at 0.68 x and 0.62 x for FY15E and FY16E respectively.

    "We recommend ‘BUY’ in this particular scrip with a target price of Rs 90 for Medium to Long term investment", says Firstcall Research Report.

    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.
    first published: Apr 29, 2015 12:49 pm

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