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Last Updated : Dec 11, 2014 06:14 PM IST | Source:

Buy Hi-Tech Gears; target of Rs 273: Firstcall

Brokerage house Firstcall Research is bullish on Hi-Tech Gears and has recommended buy rating on the stock with a target price of Rs 273 in its research report dated December 08, 2014.

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Firstcall Research report on Hi-Tech Gears

"Hi-Tech Gears is primarily engaged in the business of gears and transmission components, has reported its financial results for the quarter ended 30th SEPTEMBER, 2014. The company has achieved a turnover of Rs. 1096.05 million for the 2nd quarter of the current year 2014-15 as against Rs. 896.54 million in the corresponding quarter of the previous year. EBITDA of Rs. 120.11 million in Q2 FY15 against Rs. 134.02 million over the corresponding period of last year. In Q2 FY15, net profit of Rs. 31.04 million against Rs. 36.58 million in the corresponding quarter of the previous year. The company has reported an EPS of Rs. 1.65 for the 2nd quarter as against an EPS of Rs. 1.95 in the corresponding quarter of the previous year."



At the current market price of Rs. 241.85, the stock P/E ratio is at 27.77 x FY15E and 25.78 x FY16E respectively.

Earning per share (EPS) of the company for the earnings for FY15E and FY16E is seen at Rs.8.71 and Rs.9.38 respectively.

Net Sales and PAT of the company are expected to grow at a CAGR of 11% and 3% over 2013 to 2016E respectively.

On the basis of EV/EBITDA, the stock trades at 9.04 x for FY15E and 8.40 x for FY16E.

Price to Book Value of the stock is expected to be at 2.88 x and 2.70 x respectively for FY15E and FY16E.

"We recommend ‘BUY’ in this particular scrip with a target price of Rs 273 for Medium to Long term investment", says Firstcall Research Report.

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First Published on Dec 11, 2014 06:14 pm
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