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Last Updated : Nov 23, 2015 05:20 PM IST | Source: Moneycontrol.com

Buy NGL Fine-Chem; target of Rs 290: Firstcall Research

Firstcall Research is bullish on NGL Fine-Chem and has recommended buy rating on the stock with a target of Rs 290 in its November 21, 2015 research report.

 
 
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Firstcall Research’s report on NGL Fine Chem

NGL Fine-Chem Ltd is a manufacturer of pharmaceuticals and intermediates for usage in veterinary and human health.

In Q2 FY16, Net profit stood at Rs. 25.55 million an increase of 11.87% against Rs. 22.84 million in the corresponding quarter of previous year.

The company’s net sales stood at Rs. 229.71 in Q2 FY16 from Rs. 231.46 million over the corresponding quarter of previous year.

During the quarter operating profit is Rs. 50.54 million as against Rs. 41.62 million in the corresponding period of the previous year, an increase of 21.43%.

The company has reported an EPS of Rs. 4.14 for the 2nd quarter of FY16 as against an EPS of Rs. 3.70 in the corresponding quarter of the previous year, grew by 11.87%.


OUTLOOK AND CONCLUSION


> At the current market price of Rs. 252.40, the stock P/E ratio is at 14.56 x FY16E and 12.95 x FY17E
respectively.


> Earning per share (EPS) of the company for the earnings for FY16E and FY17E is seen at Rs.17.34 and
Rs.19.49 respectively.

Close

> Net Sales and PAT of the company are expected to grow at a CAGR of 18% and 43% over 2014 to 2017E
respectively.


> On the basis of EV/EBITDA, the stock trades at 7.87 x for FY16E and 7.12 x for FY17E.


> Price to Book Value of the stock is expected to be at 3.58 x and 2.93 x for FY16E and FY17E respectively.


> We expect that the company surplus scenario is likely to continue for the next three years, will keep its
growth story in the coming quarters also. We recommend ‘BUY’ in this particular scrip with a target price of
Rs.290.00 for Medium to Long term investment.



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First Published on Nov 23, 2015 05:20 pm
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