Get App
Moneycontrol

Co-Partners

Associate Partners

Last Updated : Nov 16, 2018 04:45 PM IST | Source: Moneycontrol.com

Buy Thangamayil; target of Rs 625: HDFC Securities

HDFC Securities is bullish on Thangamayil has recommended buy rating on the stock with a target price of Rs 625 in its research report dated November 15, 2018.

Broker Research @moneycontrolcom
 
 
live
  • bselive
  • nselive
Volume
Todays L/H
More

HDFC Securities' research report on Thangamayil


Thangamayil’s (TJL) net revenue grew by 32.5% in-line with our estimate; albeit on a favourable base (13% de-growth in base quarter due to pre-GST preponement of sales in 1QFY18). The bump up in sales is largely SSSG-led (store renovations-led) as gold/silver volume increased by 33/21% despite shift of festive season to 3Q. In spite of the strong top-line growth, gross margin cracked 37bps to 8.5% (est.: 9.9%) led by change in product mix and higher discounted sales. EBITDA margins expanded 10bps to 4.5% as op lev gains kicked in. EBITDA/APAT grew by 35/71% (a 19/11% miss).


Outlook


We reiterate a BUY rating with DCF based TP of Rs 625/sh (implied P/E - 18x Sept-20E EPS).


For all recommendations report, 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.



Get Lok Sabha 2019 Live Election Results, constituency-wise tally, news, views and analysis
Follow our Lok Sabha Election Result Live Blog here.
First Published on Nov 16, 2018 04:45 pm
Loading...
Sections
Follow us on
Available On
PCI DSS Compliant