Buy Sanwaria Consumer, target Rs 30: Rakesh Bansal

Rakesh Bansal of R K Global has a buy call on Sanwaria Consumer with a target price of Rs 30.

The current market price of Sanwaria Consumer is Rs 16.30.

Time period given by the analyst is one year when Sanwaria Consumer price can reach the defined target.


Investment rationale by Rakesh Bansal:
Company's revenue for the Q4 FY17-18 has increased by 24.32 per cent to Rs 14,078.19 million from Rs 11,323.69 million in the corresponding quarter ending of previous year.

Revenue for the FY17-18 has increased by 43.91 per cent to Rs 50,548.71 million from Rs 35,124.35 million in FY 16-17.

In the FY17-18, EBITDA stood at 2,052.45 million as against Rs 1,243.35 million in FY 16-17.

In the FY17-18, PBT stood at 1,232.35 million as against Rs 501.57 million in FY 16-17.

EPS of the company stood at Rs 1.36 in FY 17-18 as against Rs 1.19 in FY 16-17.

Net sales & PAT of the company achieved growth at a CAGR of 22 per cent & 75 per cent over 2015 to 2018 respectively.

The company's board held a meeting on 7th May and approved:
(1). Increase institutional holding in the company & raise fund to the tune of 400 crores through QIP.

(2). Issue shares to promotor at Rs 35 per share amounting to Rs 100 crore along with other investors in QIP fundraising