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Last Updated : Oct 14, 2015 01:49 PM IST | Source: Moneycontrol.com

Buy Talwalkars; target of Rs 280: Firstcall

Brokerage house Firstcall Research is bullish on Talwalkars Better value Fitness and has recommended buy rating on the stock with a target price of Rs 280 in its research report dated October 13, 2015.

 
 
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Firstcall Research's report on Talwalkars Better value Fitness

"The company has achieved a turnover of Rs. 458.72 million for the 1st quarter of the current year 2015-16 as against Rs. 401.36 million in the corresponding quarter of the previous year. EBITDA was Rs. 223.79 million in Q1 FY16, an increase of 19.74% against the corresponding period of last year. In Q1 FY16, net profit of Rs. 47.68 million against Rs. 40.31 million in the corresponding quarter of the previous year. The company has reported an EPS of Rs. 1.61 for the 1st quarter as against an EPS of Rs. 1.54 in the corresponding quarter of the previous year."

OUTLOOK AND CONCLUSION

At the current market price of Rs. 243.70, the stock P/E ratio is at 14.24 x FY16E and 13.10 x FY17E respectively.

Earning per share (EPS) of the company for the earnings for FY16E and FY17E is seen at Rs.17.11 and Rs.18.60 respectively.

Net Sales and PAT of the company are expected to grow at a CAGR of 16% and 15% over 2014 to 2017E respectively.

On the basis of EV/EBITDA, the stock trades at 7.05 x for FY16E and 6.43 x for FY17E.

Price to Book Value of the stock is expected to be at 2.28 x and 1.95 x for FY16E and FY17E respectively.

Hence, we recommend ‘BUY’ in this particular scrip with a target price of Rs 280 for Medium to Long term investment.

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Disclaimer:
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First Published on Oct 14, 2015 01:49 pm
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