The brokerage values the stock at 21x (in line with its average P/E multiple) and set a revised target price of Rs 310, based on Sep-22 EPS.
By ETMarkets.com | Updated:
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HDFC Securities has given a buy rating to Subros with a target price of Rs 310. The share price moved up by 2.24 per cent from its previous close of Rs 257.15. The stock’s last traded price is Rs 262.90.
Investment Rationale The brokerages raised their FY22/23 estimates by ~19 per cent to factor in improving margin outlook. The brokerage values the stock at 21x (in line with its average P/E multiple) and set a revised target price of Rs 310, based on Sep-22 EPS. Key risks involves slower economic recovery in India, delayed scale-up in localisation levels.
Financials For the quarter ended 30-09-2020, the company has reported a Consolidated sales of Rs 458.10 Crore, up 520.98 per cent from last quarter Sales of Rs 73.77 Crore and down 7.73 per cent from last year same quarter Sales of Rs 496.48 Crore Company has reported net profit after tax of Rs 17.73 Crore in latest quarter. Promoter/FII Holdings Promoters held 36.8 per cent stake in the company as of Sept 30, 2020, while FIIs and DIIs held 9.5 per cent and public and others 52.5 per cent.
