Buy Indo Count Industries; target of Rs 229: Motilal Oswal

Motilal Oswal's research report on Indo Count Industries

ICNT reported revenue of INR 5,129m (est. of INR 5,460m) in 4QFY17, marking flattish YoY growth. EBITDA declined 26% from INR 1,224m in 4QFY16 to INR 901m (est. of INR 1,174m) in 4QFY17.

Outlook

With a foray into products like fashion, institutional linens and utility bedding, and launch of Indo Count Retail Ventures under the brand Boutique Living in India market (Oct-16), we expect 10% revenue CAGR and 16% PAT CAGR over FY17-19E. Maintain Buy with TP of INR 229 (13x FY19E EPS).