Buy Simmonds Marshall; target of Rs 105: Firstcall Research
Brokerage house Firstcall Research is bullish on Simmonds-Marshall and has recommended buy rating on the stock with a target price of Rs 105 in its research report dated April 14, 2015.
July 31, 2015 / 06:46 PM IST
Firstcall Research's report on Simmonds-Marshall
"Simmonds Marshall Limited was incorporated in 1960 caters to the Automotive and Industrial sectors and supplies to almost all the major Automobile Manufacturers in India has reported its financial results for the quarter ended 31st December, 2014. The company has achieved a turnover of Rs. 342.69 million for the 3rd quarter of the current year 2014-15 as against Rs. 234.09 million in the corresponding quarter of the previous year. EBITDA of Rs. 50.88 million in Q3 FY15, an increase of 120.26% against the corresponding period of last year. In Q3 FY15, net profit of Rs. 19.77 million against Rs. 5.40 million in the corresponding quarter of the previous year. The company has reported an EPS of Rs. 1.77 for the 3rd quarter as against an EPS of Rs. 0.48 in the corresponding quarter of the previous year."
OUTLOOK AND CONCLUSION
At the current market price of Rs. 90.95, the stock P/E ratio is at 12.42 x FY15E and 9.67 x FY16E respectively.
Earning per share (EPS) of the company for the earnings for FY15E and FY16E is seen at Rs.7.32 and Rs.9.41 respectively.
Net Sales and PAT of the company are expected to grow at a CAGR of 21% and 45% over 2013 to 2016E respectively.
On the basis of EV/EBITDA, the stock trades at 6.14 x for FY15E and 5.08 x for FY16E.
Price to Book Value of the stock is expected to be at 2.40 x and 2.12 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 105 for Medium to Long term investment", says Firstcall Research Report.
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