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Last Updated : Feb 23, 2017 05:06 PM IST | Source: Moneycontrol.com

Buy Sarla Performance Fibers; target of Rs 77: Centrum

Centrum is bullish on Sarla Performance Fibers has recommended buy rating on the stock with a target price of Rs 77 in its research report dated February 15, 2017.

 
 
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Centrum's report on Sarla Performance Fibers


Consolidated revenue was up a mere 1.1% at Rs 746mn while standalone revenue rose 9.1% YoY to Rs 655mn. Operating profit increased 3.7% to Rs 180mn with margins expanding by 61bps to 24.1%. The consolidated gross margin stood at 62.7% (up 65bps YoY) while the standalone gross margin was at 55.3%.


Outlook


We maintain our Buy rating on Sarla Performance Fibers and TP of Rs 77 as we value the company on conservative Adj OCF/EV yield. The yarn manufacturer’s standalone business continues to grow at a healthy rate and volumes have bounced back to high single digits due to de-bonding of the Vapi unit.

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First Published on Feb 23, 2017 05:06 pm
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