February 10, 2017 / 15:36 IST
We believe management’s ability to fill missing product/category gaps coupled with aggressive distribution led channel expansion would drive volume in the medium term. Further cost saving measures to reduce imported RM component and operating leverage would drive margins leading to re-rating of the company over the next two to three years.
Outlook
We maintain our Hold rating on IFB Industries with a revised TP of Rs 610 (22x FY19E EPS) as we roll forward our estimates to FY19E. While we continue to like the structural story of the company over the medium term, the stock has rallied 30% YTD and 55% in the last six months which we believe captures all the near term upside in earnings.
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