Buy Siyaram Silk Mills; target of Rs 1145: Angel Broking

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Angel Broking's report on Siyaram Silk MillsFor 2QFY2016, Siyaram Silk Mills (SSML)’ results have come in slightly below our estimates. The company has reported a flattish top-line and bottom-line growth. Flattish top-line growth: The top-line for the quarter came in flat; ie it declined marginally by 0.02% yoy to `398cr.Outlook and Valuation: Going forward, we expect SSML to report a net sales CAGR of ~10% to ~`1,815cr and adj.net profit CAGR of ~12% to `98cr over FY2015-17E on back of market leadership in blended fabrics, strong branding, wide distribution channel, strong presence in tier II and tier III cities and emphasis on latest designs and affordable pricing points. At the current market price, SSML trades at an inexpensive valuation (at a P/E of 9.0x its FY2017E earnings). We have a Buy rating on the stock and target price of `1,145 (11x FY2017E EPS)., says Angel Broking research report.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.

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