Kitex Garments Ltd - Rating BUY

Discussion in 'Latest Brokerage Stock Buy-Sell Reports' started by Vidhi Khanna, Apr 6, 2015.

  1. Vidhi Khanna

    Vidhi Khanna Active Member Staff Member

    Joined:
    Mar 19, 2015
    Messages:
    579
    Likes Received:
    55
    At CMP of Rs.546.25, KGL is trading at 14.2x its FY16E EPS of Rs.38.3 which is at an attractive valuation (PEG of 0.3x only). With 25% sales CAGR (FY15E- FY18E), debt free status by FY18E, strong margin improvement (1000 basis points by FY18E) with sales from its own brand and licensing of private labels and strong return ratios (50% plus roe and 40% ROCE), We expect stock to trade at 20x its FY16E EPS of Rs.38.3. We assign a BUY rating on the stock with a price target of Rs.766 in next 12 months which is more than 40% upside from current levels.


    Click here to view Report
     
  2. GrowthInvestorTrader

    GrowthInvestorTrader New Member

    Joined:
    Apr 5, 2015
    Messages:
    19
    Likes Received:
    1
    Agreed, we bought fresh at 510 last week.
     
  3. ssharma

    ssharma New Member

    Joined:
    Mar 26, 2015
    Messages:
    18
    Likes Received:
    3
    It just zoomed.

    What is the outlook from here?

    BTW, purchased just before it started flying.
     
Loading...