Karvy's research report on Hitachi Home While room Air-Conditioners (AC) are mainly sold to individuals, there is a large market for institutional buyers in this segment. With its Logicool range, the company has added significantly to this segment and has increased the number of institutional buyers from 58 to 90.At CMP of Rs.1367, the stock is trading at P/E of 36.2x for FY17E. With the anticipated increase in top line due to increase in institutional buyers for room ACs, strong technical support and increase in distribution network, we expect that the consumer expenditure will further increase as the economy revives and hence there will be growth in HHLI’s top line and bottom line as well. Based on P/E of42x, we initiate the coverage with a “BUY” rating for a Target Price of Rs. 1588 representing an upside of 16%.For all recommendations, click here Disclaimer: 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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