Brokerage house Firstcall Research is bullish on Vinyl Chemicals (India) and has recommended buy rating on the stock with a target price of Rs 91 in its research report dated April 21, 2015.
Firstcall Research's report on Vinyl Chemicals (India)
The company’s net profit stood to Rs. 16.70 million against Rs. 27.20 million in the corresponding quarter ending of previous year. Revenue for the quarter rose by 33.93% to Rs. 1090.70 million from Rs. 814.40 million, when compared with the prior year period. Reported earnings per share of the company stood at Rs. 0.91 a share during the quarter, decrease of 38.60% over previous year period. Profit before interest, depreciation and tax is Rs. 25.20 million as against Rs. 40.40 million in the corresponding period of the previous year.
OUTLOOK AND CONCLUSION
At the current market price of Rs.79.00, the stock P/E ratio is at 12.37 x FY15E and 10.80 x FY16E respectively.
Earning per share (EPS) of the company for the earnings for FY15E and FY16E is seen at Rs.6.39 and Rs.7.31 respectively.
Net Sales and PAT of the company are expected to grow at a CAGR of 30% and 31% over 2013 to 2016E respectively.
On the basis of EV/EBITDA, the stock trades at 6.23 x for FY15E and 5.07 x for FY16E.
Price to Book Value of the stock is expected to be at 3.88 x and 2.86 x respectively for FY15E and FY16E.
"We recommend ‘BUY’ in this particular scrip with a target price of Rs 91 for Medium to Long term investment", says Firstcall Research Report.
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