Firstcall Research's report on Redington (India)
"The Company Net sales for the 3rd quarter of FY15 rose by 18.24% to Rs. 84271.80 million from Rs. 71269.10 million, when compared with the prior year period. Net profit increased by 16.61% to Rs. 1010.70 million from Rs. 866.70 million, when compared with the prior year period. Reported earnings per share of the company stood at Rs. 2.53 a share during the quarter, registering 16.54%, increased over previous year period. In Q3 FY15, Profit before interest, depreciation and tax is Rs. 2023.30 million as against Rs. 1880.70 million in the corresponding period of the previous year."
Outlook and Conclusion
At the current market price of Rs.123.25, the stock P/E ratio is at 12.71 x FY15E and 11.59 x FY16E respectively.
Earning per share (EPS) of the company for the earnings for FY15E and FY16E is seen at Rs. 9.70 and Rs. 10.64 respectively.
Net Sales and PAT of the company are expected to grow at a CAGR of 15% and 10% over 2013 to 2016E respectively.
On the basis of EV/EBITDA, the stock trades at 10.64 x for FY15E and 9.88 x for FY16E.
Price to Book Value of the stock is expected to be at 2.04 x and 1.74 x respectively for FY15E and FY16E.
"We recommend ‘BUY’ in this particular scrip with a target price of Rs 140 for Medium to Long term investment", says Firstcall Research Report.
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