Buy Tega Industries, target price Rs 1130: JM Financial

JM Financial has buy call on Tega Industries with a target price of Rs 1130. The current market price of Tega Industries is Rs 936.3.

Tega Industries Ltd., incorporated in the year 1976, is a Large Cap company (having a market cap of Rs 6244.25 Crore) operating in General sector.

Tega Industries Ltd. key Products/Revenue Segments include Rubber Products, Sale of services, Export Incentives, Scrap, Service Charges and Commission for the year ending 31-Mar-2022.



Financials
For the quarter ended 30-06-2023, the company reported a Consolidated Total Income of Rs 276.21 Crore, down -31.47 % from last quarter Total Income of Rs 403.05 Crore and up 14.53 % from last year same quarter Total Income of Rs 241.17 Crore. Company reported net profit after tax of Rs 20.49 Crore in latest quarter.

Investment Rationale
The brokerage forecasts sales/EPS CAGR of 20%/14% over FY23-26E for Tega led by a 16% CAGR in the consumables business and incremental contribution from MSEL (acquired in Feb-23). It maintains BUY with revised TP of INR1130 (30x Sept’25E EPS).

Promoter/FII Holdings
Promoters held 74.99 per cent stake in the company as of 30-Jun-2023, while FIIs owned 2.5 per cent, DIIs 16.64 per cent.