Brokerage house Firstcall Research is bullish on Igarashi Motors and has recommended buy rating on the stock with a target price of Rs 385 in its research report dated January 29, 2015.
Firstcall Research's report on Igarashi Motors
"Igarashi Motors has achieved a turnover of Rs. 1018.29 million for the 3rd quarter of the financial year 2015 as against Rs. 927.04 million in the corresponding quarter of the previous year. EBITDA of Rs. 273.72 million in Q3 FY15 and increase of 29.60% against the corresponding period of last year. In Q3 FY15, net profit is at Rs. 127.85 million against Rs. 125.72 million in the corresponding quarter of the previous year. The company has reported an EPS of Rs. 4.18 for the 3rd quarter as against an EPS of Rs. 5.93 in the corresponding quarter of the previous year."
OUTLOOK AND CONCLUSION
At the current market price of Rs. 344.10, the stock P/E ratio is at 23.75 x FY15E and 21.66 x FY16E respectively.
Earning per share (EPS) of the company for the earnings for FY15E and FY16E is seen at Rs.14.49 and Rs.15.89 respectively.
Net Sales and PAT of the company are expected to grow at a CAGR of 14% and 32% over 2013to 2016E respectively.
On the basis of EV/EBITDA, the stock trades at 10.53 x for FY15E and 9.01 x for FY16E.
Price to Book Value of the stock is expected to be at 3.69 x and 2.91 x respectively for FY15E and FY16E.
"We recommend ‘BUY’ in this particular scrip with a target price of Rs 385 for Medium to Long term investment", says Firstcall Research Report.
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