HomeNewsBusinessStocksBuy Siyaram Silk; target of Rs 908: Firstcall Research

Buy Siyaram Silk; target of Rs 908: Firstcall Research

Firstcall Research is bullish on Siyaram Silk Mills and has recommended buy rating on the stock with a target of Rs 908 in its November 24, 2014 research report.

November 25, 2014 / 12:45 IST
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Firstcall Research report on Siyaram Silk Mills“Siyaram Silk Mills Ltd was incorporated in the year 1978 is one of the most renowned vertically integrated textile companies in the country. It is the leading producer of blended fabrics in India, having the widest range of latest machinery in its eco-friendly plants at Tarapur, Daman and Mumbai. Siyaram in-house production facility produces over 4 million metres of fabric per month consists of spinning, dyeing, weaving & finishing plus garmenting enable it to a wide offering of yarns, fabric, home textiles and apparels. The continuous investments in state-of-the-art infrastructure & technology helps Siyaram’s to maintain its lead in the textile sector. It offers a complete and diverse range of products that are backed by cutting-edge research & development & ultra-modern facilities for yarn dyeing, weaving & garmenting. The brand retails in over 40000 outlets all over the country. It is the exclusive retail outlets offer the entire range of Siyaram’s brands. The Come home to Siyaram positioning has built an emotional connect with millions of consumers over the three decades of it operations.” “At the current market price of Rs. 825.00, the stock P/E ratio is at 10.52 x FY15E and 9.74 x FY16E Respectively. Earning per share (EPS) of the company for the earnings for FY15E and FY16E is seen at Rs. 78.40 and Rs. 84.73 respectively. Net Sales and PAT of the company are expected to grow at a CAGR of 17% and 13% over 2013 to 2016E respectively. On the basis of EV/EBITDA, the stock trades at 5.82 x for FY15E and 5.49 x for FY16E. Price to Book Value of the stock is expected to be at 1.74 x and 1.48 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. 908.00 for Medium to Long term investment,” says Firstcall Research report.  

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first published: Nov 25, 2014 12:45 pm

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