Buy Nirlon, target price Rs 400: ICICI Direct

ICICI Direct has buy call on Nirlon with a target price of Rs 400. The current market price of Nirlon Ltd. is Rs 293.
Time period given by analyst is one year when Nirlon Ltd. price can reach defined target.

Nirlon Ltd., incorporated in the year 1958, is a Mid Cap company (having a market cap of Rs 1992.51 Crore) operating in Real Estate sector.


Financials
For the quarter ended 31-03-2021, the company reported a Standalone Total Income of Rs 77.85 Crore, down -3.25 % from last quarter Total Income of Rs 80.46 Crore and down -5.61 % from last year same quarter Total Income of Rs 82.48 Crore. Company reported net profit after tax of Rs 28.73 Crore in latest quarter.

Investment Rationale
The brokerage likes Nirlon given its quality Grade-A office assets and backing of Reco Berry – an affiliate of GIC. The brokerage expects its lease revenues to grow at 35% CAGR to Rs 503 crore in FY21-23E, led by incremental leasing revenues flow through from phase V. It rolls over NAV to FY22E. It maintains BUY rating on the stock with an NAV-based target price of Rs 400/share (earlier Rs 355/share).