Karvy is bullish on Kitex Garments and has recommended buy rating on the stock with a target price of Rs 954 in its research report dated September 28, 2015.
Karvy's reserach report on Kitex Garments
Kitex Garments Limited is based in Kochi, India. Kitex Garments Ltd. was incorporated in 1991. It made its public issue in the year 1995. It is promoted by Boby M Jacob, Kitex Exports Ltd, Sabu M Jacob and Somy Varghese. Kitex Garments Limited is in the business of manufacturing and exporting garments. The company exports its products to US and European markets. With unmatched global connections, this company caters to prominent and renowned conglomerates in USA and Europe. The company currently employs over 8000 people at its facility, and has been a business provider to many satellite businesses in the state. It is the world’s third largest infant wear supplier and the largest exporter from India. The products of KGL are Body suits, Sleep wear, Rompers, Burps, Bibs and Training pants.
At CMP, the stock is trading at 29.8x and 22.1x FY16E & FY17E P/E respectively. We believe that the stock is currently available at attractive valuations. We initiate a "BUY" recommendation with a target price of Rs. 954 per share, which represents an upside potential of 18%.
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