Brokerage house Firstcall Research is bullish on Orbit Exports and has recommended buy rating on the stock with a target price of Rs 435 in its research report dated June 24, 2015.
Firstcall Research's report on Orbit Exports
Orbit Exports Limited engages in the manufacture and export of novelty fabrics in India and exports its products to south East Asian countries, the Middle East, Europe, and North America, The Company has reported its financial results for the quarter ended 31st March, 2015.
The Company has achieved a turnover of Rs. 424.77 million for the 4th quarter of the financial year 2014-15 as against Rs. 366.87 million in the corresponding quarter of the previous year. The company has reported an EBITDA of Rs. 120.75 million an increased by 69.90% over the prior period of previous year. In Q4 FY15, net profit is at Rs. 63.26 million against Rs. 26.47 million in Q4 FY14. The company has reported an EPS of Rs. 4.42 for the 4th quarter of financial year as against an EPS of Rs. 1.91 in the corresponding quarter of the previous year.
OUTLOOK AND CONCLUSION
At the current market price of Rs. 394.70, the stock P/E ratio is at 17.91 x FY16E and 15.61 x FY17E respectively.
Earning per share (EPS) of the company for the earnings for FY16E and FY17E is seen at Rs. 22.04 and Rs. 25.29 respectively.
Net Sales and PAT of the company are expected to grow at a CAGR of 13% and 26% over 2014 to 2017E respectively.
On the basis of EV/EBITDA, the stock trades at 11.42 x for FY16E and 10.00 x for FY17E.
Price to Book Value of the stock is expected to be at 4.72 x and 3.84 x respectively for FY16E and FY17E.
"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 435 for Medium to Long term investment", says Firstcall Research Report.
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