Moneycontrol Be a Pro
Get App
Last Updated : Sep 21, 2015 02:45 PM IST | Source: Moneycontrol.com

Buy Kitex Garments; target of Rs 960: Motilal Oswal

Motilal Oswal is bullish on Kitex Garments and has recommended buy rating on the stock with a target price of Rs 960 in its research report dated September 18, 2015.

 
 
live
  • bselive
  • nselive
Volume
Todays L/H
More

Motilal Oswal's reserach report on Kitex Garments

Kitex Garments Ltd (KTG) is based in Kochi, India.Incorporated in 1992, its first public issue was in 1995. Its promoters are Mr MC Jacob, Mr Boby Jacob and Mr Sabu Jacob. KTG is in the business of manufacturing and exporting infant garments.Company derives 80% of its revenue from the sale of infant garments and the balance 20% from the sale of fabric to Kitex Childrenwear.

We expect KTG to capture a larger pie of the infant-wear value chain with the launch of its own brand in the US as well as licensing of private labels there. Forward integration holds high significance for the company, as margins in its own brand will be double of the current business (~60% versus current margins of ~30%), along with higher realizations. We value the stock at 26x FY17E EPS of INR36.9, arriving at a March-2016 price target of INR960. Maintain Buy.


For all recommendations, click here

Disclaimer:
The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.



The Great Diwali Discount!
Unlock 75% more savings this festive season. Get Moneycontrol Pro for a year for Rs 289 only.
Coupon code: DIWALI. Offer valid till 10th November, 2019 .
First Published on Sep 21, 2015 02:45 pm
Loading...
Sections
Follow us on
Available On