ICICI Direct is bullish on Hind Rectifiers has recommended buy rating on the stock with a target price of Rs 165 in its research report dated August 09, 2019.
ICICI Direct's research report on Hind Rectifiers
Hind Rectifiers (HRL) reported a beat in the operational performance for Q1FY20 across all parameters wherein topline, EBITDA, PAT grew 57.9%, 134.6%, 292.6%, respectively, YoY. Topline at Rs 68.3 crore was driven by a traction in order execution. EBITDA margins improved 470 bps to 14.5%. Absolute EBITDA came in at Rs 9.7 crore while PAT came in at Rs 5.2 crore. The company continues to benefit from the capex carried out by Indian Railways and is well placed to achieve ~20% topline growth in FY20E.
Overall, we estimate topline, EBITDA and PAT growth at a CAGR of 16%, 33% and 42%, respectively. We reiterate our BUY recommendation on the stock with a target price of Rs 165 based on an estimated FY21E EPS of Rs 14.4/share.
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