Phillip Capital maintains ‘buy’ on Indo Count, target price Rs 78

Phillip Capital has maintained its ‘Buy’ rating on Indo Count in the long term with a target price of Rs 78. Shares of Indo Count closed at Rs 60, up 11.8% while BSE Sensex closed 349.76 points up (+0.85%) at 41,565.90.


Company Financials



For the quarter ended 31-12-2019, the company has reported a Consolidated sales of Rs 636.86 Crore, up 12.10 % from last quarter Sales of Rs 568.14 Crore and up 20.66 % from last year same quarter Sales of Rs 527.81 Crore Company has reported net profit after tax of Rs 19.56 Crore in latest quarter.

The company’s top management includes Dr.(Mrs.)Vaijayanti Pandit, Mr.R Anand, Mr.Prem Malik, Mr.P N Shah, Mr.Mohit Jain, Mr.Kamal Mitra, Mr.Kailash R Lalpuria, Mr.Dilip J Thakkar, Mr.Anil Kumar Jain, Mr.Sushil Kumar Jiwarajka. Company has Suresh Kumar Mittal & Co. as its auditors As on 31-12-2019, the company has a total of 197,399,670 shares outstanding.

Investment Rationale

The company has a strong product profile and customer relationships, which will help in current challenging times. India has an advantage in raw-material availability and labour cost, and is gaining market share in US and EU cotton home textiles. Net debt of the company increased to Rs 4 billion in Q3FY20 from Rs 2.8 billion in FY19.