Buy Tega Industries, target price Rs 750: JM Financial

JM Financial has buy call on Tega Industries with a target price of Rs 750. The current market price of Tega Industries is Rs 637.25.

Tega Industries, incorporated in the year 1976, is a Large Cap company (having a market cap of Rs 4243.42 Crore) operating in General sector.

Tega Industries 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 31-12-2022, the company has reported a Consolidated Total Income of Rs 307.50 Crore, up 8.68 % from last quarter Total Income of Rs 282.94 Crore and up 17.63 % from last year same quarter Total Income of Rs 261.40 Crore. Company has reported net profit after tax of Rs 47.27 Crore in latest quarter.

The company’s top management includes Mr.Madan Mohan Mohanka, Mr.Madhu Dubhashi, Mr.Jagdishwar Prasad Sinha, Mr.Syed Yaver Imam, Mr.Mehul Mohanka, Mr.Madan Mohan Mohanka, Mr.Ashwani Maheshwari, Mr.Madhu Dubhashi, Mr.Jagdishwar Prasad Sinha, Mr.Syed Yaver Imam, Mr.Mehul Mohanka, Mr.Ashwani Maheshwari. Company has Price Waterhouse & Co Bangalore LLP as its auditors. As on 31-12-2022, the company has a total of 7 Crore shares outstanding.

Investment Rationale
The brokerage maintains its positive stance on Tega on higher penetration opportunity for DynaPrime liners, to deliver25-30% CAGR over FY22-25E, value accretive acquisition to diversify revenue stream and increase product offering, and sustainable EBITDA margins at 21-23% due to operating leverage.

Promoter/FII Holdings
Promoters held 79.17 per cent stake in the company as of 31-Dec-2022, while FIIs owned 2.46 per cent, DIIs 11.67 per cent.