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Hold Linc Pen & Plastics; target of Rs 480: ICICI Direct

ICICI Direct has recommended Hold rating on Linc Pen & Plastics with a target price of Rs 480 in its research report dated January 16, 2018.

January 24, 2018 / 11:50 AM IST
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ICICI Direct' research report on Linc Pen & Plastics

Linc Pen & Plastics (Linc) witnessed stellar price appreciation in the recent past with the stock up 100% from lows in September 2017. A part of the journey is explained by the scarcity of profitable name s in the writing instrument category in the listed space and reference to last M&A activity involving Cello Pens (acquired by BIC Pens, France) However, Linc ’s financial performance has been weak with H1FY18  sales at RS 146 crore, down 16% YoY, EBITDA at RS 9.9 crore with corresponding  E B ITDA margins at 6.8%, down 280 bps YoY. PAT in H1FY18 was at RS 2.1 crore, down 75% YoY


We expect Linc to clock  sales and PAT CAGR of 9.1% and 34.7%, respectively , in FY18 E - 20E. We now value Linc at RS 480 i.e. 1.8x MCap /sales on FY19E & 20E average sales of RS 394 crore with a HOLD rating on the stock.

For all recommendations report, click here

Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on are their own, and not that of the website or its management. advises users to check with certified experts before taking any investment decisions.

Broker Research
first published: Jan 16, 2018 06:46 pm

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