Karvy is bullish on IFB Industries and has recommended buy rating on the stock with a target price of Rs 534 in its research report dated December 24, 2015.
Karvy's research report on IFB Industries
IFB Industries Ltd, originally known as Indian Fine Blanks Ltd, has recorded 182% volume growth in Top Loader washing machine in Q2FY16 against Q2FY15 and targeting robust volume growth in FY16E; which contributes around 17% of the total revenue in Q1FY16.
At CMP of Rs.450, the stock is trading at P/E of 21.1x for FY17E. With the anticipated increase in market share in top loader washing machine segment, increase in distribution network and increasing brand awareness, we expect that the consumer expenditure will further increase as the economy revives and hence there will be growth in IFB’s top line and bottom line as well. At P/E of 25.0x, we initiate the coverage with a “BUY” rating for a Target Price of Rs.534 representing an upside of 19%.
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