Moneycontrol Be a Pro
Get App
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.

 
 
live
  • bselive
  • nselive
Volume
Todays L/H
More


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.

For all recommendations, click here

Disclaimer:
The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.


LIVE NOW... Video series on How to Double Your Monthly Income... where Rahul Shah, Ex-Swiss Investment Banker and one of India's leading experts on wealth building, reveals his secret strategies for the first time ever. Register here to watch it for FREE.
First Published on Feb 23, 2017 05:06 pm
Loading...
Follow us on
Available On