Buy Sandhar Technologies, target Rs 472: Karvy Stock Broking Ltd
Buy Sandhar Technologies at a price target of Rs 472.0 .
By ETMarkets.com |
Karvy Stock Broking Ltd has buy call on Sandhar Technologies Ltd. with a target price of Rs 472.0 . The current market price of Sandhar Technologies Ltd. is Rs 380.75 Time period given by the brokerage is a year when Sandhar Technologies Ltd. price can reach the defined target.
Investment rationale by Karvy
Entry into high growth phase – Maintain BUYDuring FY18, Sandhar Technologies (Sandhar) sales grew by 20.8% to Rs19.5bn (our estimates of Rs19.4bn), driven by strong volume growth across all its business segments. Its EBITDA margins expanded by 160ps to 10.7% (in line with our estimates). PAT increased by 55.8% YoY to Rs662mn (our estimates of Rs 685mn). We largely maintain our Sales and PAT estimates for FY19 and FY20 and reiterate Our BUY rating on the stock with price target of Rs472 (PER of 18xFY20E earnings).
Investment rationale by Karvy
Entry into high growth phase – Maintain BUYDuring FY18, Sandhar Technologies (Sandhar) sales grew by 20.8% to Rs19.5bn (our estimates of Rs19.4bn), driven by strong volume growth across all its business segments. Its EBITDA margins expanded by 160ps to 10.7% (in line with our estimates). PAT increased by 55.8% YoY to Rs662mn (our estimates of Rs 685mn). We largely maintain our Sales and PAT estimates for FY19 and FY20 and reiterate Our BUY rating on the stock with price target of Rs472 (PER of 18xFY20E earnings).
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