Firstcall Research is bullish on ITL Industries and has recommended buy rating on the stock with a target of Rs 47 in its September 22, 2015 research report.
Firstcall Research's report on ITL Industries
ITL Industries Ltd. was established in 1986, as a commercial Tool Room to cater to the needs of local industries.Engineering industry in India then, was still in nascent stage and demand for Metal Sawing Machines was growing rapidly. ITL emerged as the sole manufacturer of India's first cent percent indigenously designed and developed High Speed Double Column Band Saw Machine to meet the growing demand. ITL offers 60 different models of Bandsaw machine ranging from 100 mm to 3000 mm cutting capacity with manual, semi automatic, automatic and fourth generation CNC machine. In1996, ITL joined hands with KASTO Maschinenfabrik GmbH Germany to manufacture state-of-the-art High Speed Power Hacksawing Machines in India, with a buy back arrangement. ITL manufacture's three models of Kasto Sawing Machines with cutting capacities 250 mm, 280 mm. and 400 mm. dia. in India as per Kasto Technology. With the outlet in USA, ITL is entering into global market rapidly and established as a reliable qualified vendor to world leaders in the engineering fields.
At the current market price of Rs. 40.10, the stock P/E ratio is at 3.88 x FY16E and 3.41 x FY17E respectively.Earning per share (EPS) of the company for the earnings for FY16E and FY17E is seen at Rs.8.84 and Rs.10.02 respectively.Net Sales and PAT of the company are expected to grow at a CAGR of 13% and 17% over 2014 to 2017E respectively.On the basis of EV/EBITDA, the stock trades at 3.88 x for FY16E and 3.41 x for FY17E.Price to Book Value of the stock is expected to be at 0.52 x and 0.47 x respectively for FY16E and FY17E.We recommend ‘BUY’ in this particular scrip with a target price of Rs.47.00 for Medium to Long term investment.
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