Firstcall Research report on Shilpa Medicare
Shilpa Medicare, net profit jumps to Rs. 220.82 million against Rs. 176.29 million in the corresponding quarter ending of previous year, an increase of 25.26%. The company achieved a turnover of Rs. 1433.54 million registering an increase of 12.33% for the 2nd quarter of the current year 2014-15 as against Rs. 1276.15 million in the corresponding quarter of the previous year. Reported earnings per share of the company stood at Rs. 5.73 a share during the quarter as against Rs. 4.79 over previous year period. Profit before interest, depreciation and tax is Rs. 335.81 million as against Rs. 294.32 million in the corresponding period of the previous year.
OUTLOOK AND CONCLUSION
At the current market price of Rs. 519.80, the stock P/E ratio is at 22.28 x FY15E and 19.74 x FY16E respectively.
Earnings per share (EPS) of the company for the earnings for FY15E and FY16E are seen at Rs. 23.33 and Rs. 26.33 respectively.
Net Sales and PAT of the company are expected to grow at a CAGR of 25% and 30% over 2013 to 2016E respectively.
On the basis of EV/EBITDA, the stock trades at 13.91 x for FY15E and 12.49 x for FY16E.
Price to Book Value of the stock is expected to be at 3.98 x and 3.32 x respectively for FY15E and FY16E.
"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 577 for Medium to Long term investment", says Firstcall Research Report.
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