Hold Godfrey Phillips; target Rs 2888: Firstcall Research
Brokerage house Firstcall Research has recommended hold rating on Godfrey Phillips India with a target price of Rs 2888, in its September 19, 2013 research report.
October 01, 2013 / 18:21 IST
Firstcall's research report on Godfrey Phillips India
"Godfrey Phillips India has achieved a turnover of Rs. 6149.70 million for the 1st quarter of the current year 2013-14 as against Rs. 4838.30 millions in the corresponding quarter of the previous year. The company has reported an EBITDA of Rs. 556.40 millions and a net profit of Rs.233.50 million against Rs. 280.30 million reported respectively in the corresponding quarter of the previous year. The company has reported an EPS of Rs. 22.45 for the 1st quarter as against an EPS of Rs. 26.95 in the corresponding quarter of the previous year."Outlook and Conclusion: "At the current market price of Rs. 2699.00, the stock P/E ratio is at 15.58 x FY14E and 14.41 x FY15E respectively. Earning per share (EPS) of the company for the earnings for FY14E and FY15E is seen at Rs.173.24 and Rs.187.36 respectively. Net Sales and PAT of the company are expected to grow at a CAGR of 10% and 2% over 2012 to 2015E respectively. On the basis of EV/EBITDA, the stock trades at 8.12 x for FY14E and 7.38 x for FY15E. Price to Book Value of the stock is expected to be at 2.27 x and 1.96 x respectively for FY14E and FY15E. 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 'HOLD' in this particular scrip with a target price of Rs 2888 for Medium to Long term investment," says Firstcall Research report. 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. 
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