HDFC Securities puts 'buy' on Bartronics India
HDFC Securities initiates coverage on Bartronics India with a ‘buy’ rating. With 90% and 95% market share in smart card and radio frequency identification (RFID) segments.
By ET Bureau |
BARTRONICS INDIA
RESEARCH: HDFC SECURITIES
RATING: BUY
CMP: RS 154
HDFC Securities initiates coverage on Bartronics India with a ���buy��� rating. With 90% and 95% market share in smart card and radio frequency identification (RFID) segments, respectively, the company offers all automatic identification & data capture (AIDC) solutions under one roof.
Its early entry into smart card manufacturing will help it to retain its dominance in the area. Bartronics is the only manufacturer of smart cards in the country. Its smart card capacity has already been booked for the next two years.
It also has the capability to provide end-to-end AIDC solutions, which will help it to expand its order book and topline.
The company���s revenues and profits are expected to witness a CAGR of 72% and 78% over FY08-FY 10E. At the current market price, it is trading at 6.5x and 3.8x its FY09E and FY10E forward EPS, respectively.
HDFC Securities has arrived at a discounted cash flow (DCF)-based target price of Rs 234 ��� an upside of 53% from current levels.
While the bull case target price is Rs 339 (upside of 122%), the bear case target price is Rs 147 (downside of 4%) from current levels.
RESEARCH: HDFC SECURITIES
RATING: BUY
CMP: RS 154
HDFC Securities initiates coverage on Bartronics India with a ���buy��� rating. With 90% and 95% market share in smart card and radio frequency identification (RFID) segments, respectively, the company offers all automatic identification & data capture (AIDC) solutions under one roof.
Its early entry into smart card manufacturing will help it to retain its dominance in the area. Bartronics is the only manufacturer of smart cards in the country. Its smart card capacity has already been booked for the next two years.
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It also has the capability to provide end-to-end AIDC solutions, which will help it to expand its order book and topline.
The company���s revenues and profits are expected to witness a CAGR of 72% and 78% over FY08-FY 10E. At the current market price, it is trading at 6.5x and 3.8x its FY09E and FY10E forward EPS, respectively.
HDFC Securities has arrived at a discounted cash flow (DCF)-based target price of Rs 234 ��� an upside of 53% from current levels.
While the bull case target price is Rs 339 (upside of 122%), the bear case target price is Rs 147 (downside of 4%) from current levels.
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