Arihant Capital is bullish on HSIL has recommended buy rating on the stock with a target price of Rs 340 in its research report dated February 07, 2017.
Arihant Capital's research report on HSIL
Q3FY17 Net Revenue at Rs 474 crores was below our expectations. Company has shown weakness in revenue growth across segments. Sanitaryware and faucet both grew in single digit and PPD growth was declined and company has postponed the process of activating the 4th furnace mainly due to demonetisation impact on end user industry.
We remain “optimistic” on Building products segment and consumer appliances segment due to strengthening retail focus which is beginning to show signs of improvement. Penetration of faucets, sanitaryware and consumer appliances are revenue drivers. We value the stock at 19x FY18EPS, and assign a price target of Rs 340 with a “BUY” rating on the stock.
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First Published on Feb 10, 2017 03:45 pm