Brokerage house Firstcall Research is bullish on Sundram Fasteners and has recommended buy rating on the stock with a target price of Rs 210 in its research report dated March 10, 2015.
Firstcall Research's report on Sundram Fasteners
"Sundram Fasteners is a part of the US $5 billion TVS Group, it manufactures, exports, and sells automotive and industrial components has reported its financial results for the quarter ended 31st December, 2014. The company’s net profit jumps to Rs. 301.30 million against Rs. 286.40 million in the corresponding quarter ending of previous year, an increase of 5.20%. Revenue for the quarter rose by 23.54% to Rs. 5886.20 million from Rs. 4764.50 million, when compared with the prior year period. Reported earnings per share of the company stood at Rs. 1.43 a share during the quarter as against Rs. 1.36 over previous year period. Profit before interest, depreciation and tax is Rs. 778.80 million as against Rs. 676.80 million in the corresponding period of the previous year."
OUTLOOK AND CONCLUSION
At the current market price of Rs. 182.75, the stock P/E ratio is at 25.53 x FY15E and 21.65 x FY16E respectively.
Earnings per share (EPS) of the company for the earnings for FY15E and FY16E are seen at Rs. 7.16 and Rs. 8.44 respectively.
Net Sales and PAT of the company are expected to grow at a CAGR of 9% and 23% over 2013 to 2016E respectively.
On the basis of EV/EBITDA, the stock trades at 12.34 x for FY15E and 10.74 x for FY16E.
Price to Book Value of the stock is expected to be at 4.34 x and 3.92 x respectively for FY15E and FY16E.
"We recommend ‘BUY’ in this particular scrip with a target price of Rs 210 for Medium to Long term investment", says Firstcall Research Report.
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