Buy KRBL; target of Rs 530: Axis Direct

Axis Direct is bullish on KRBL has recommended buy rating on the stock with a target price of Rs 530 in its research report dated March 14, 2018.

Broker Research

April 05, 2018 / 17:46 IST

26 Aug, 2025 12:21

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Axis Direct's research report on KRBL

KRBL in Q3FY18 posted consolidated revenues of Rs 784 Cr. (down 2% YoY, up 10% QoQ), on account of GST related impact. However, due to company’s brand strength, higher price realizations in domestic market and other efficiencies, led to KRBL posting EBITDA margins of 23% vs. 22.4% Y-o-Y. PAT was Rs 123 Cr. (up 11% YoY, down 19% QoQ) due to lower finance costs. The average realizations stood at 59 Rs/kg vs. 48 Rs/kg YoY.

Outlook

We believe that with GST impact getting normalized and changes in consumer preference towards branded Basmati rice in domestic market, also with Iran resuming purchases and entry into premium health foods segment, augurs well for KRBL’s earnings. Due to market leadership position and strong pricing power, we value KRBL at 19x FY20E EPS and we recommend BUY with a Target Price of Rs 530.For all recommendations report, click here

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