Buy Akzo Nobel India, target price Rs 2350: ICICI Securities
Akzo Nobel India Ltd., incorporated in the year 1954, is a Mid Cap company (having a market cap of Rs 8935.24 Crore) operating in Building Materials sector.
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Promoters held 74.8 per cent stake in the company as of June 30, 2020, while FIIs held 0.9 per cent, DIIs 8.6 per cent and public and others 15.7 per cent.
ICICI Securities has given buy rating to Akzo Nobel India with a target price of Rs 2350. The share price moved up by 3.67 per cent from its previous close of Rs 1905.10. The stock’s last traded price is Rs 1975.
Akzo Nobel India Ltd., incorporated in the year 1954, is a Mid Cap company (having a market cap of Rs 8935.24 Crore) operating in Building Materials sector.
Financials For the quarter ended 30-06-2020, the company reported a Consolidated sales of Rs 258.50 Crore, down 55.53 % from last quarter Sales of Rs 581.27 Crore and down -64.08 % from last year same quarter Sales of Rs 719.69 Crore. The Company reported net profit after tax of Rs -20.26 Crore in latest quarter.
Investment Rationale The brokerage retains BUY with DCF-based TP of Rs 2,350. Akzo is trading at lowest valuation (33x FY22E) among its peers in paint sector providing significant margin of safety. Promoter/FII Holdings Promoters held 74.8 per cent stake in the company as of June 30, 2020, while FIIs held 0.9 per cent, DIIs 8.6 per cent and public and others 15.7 per cent.
