Buy Camlin Fine Sciences For A Target Of Rs. 150: IndiaNivesh

Camlin seems to be poised at inflexion point for rapid growth in coming years. It has completed capacity enhancements for most of its existing and new products. Continuous technological up-gradation, process re-engineering and innovation focused research has several new products lined for launches in near future and its customer centric focus catering to their ever changing requirements gives them a superior edge over competitors.

Assuming the company is able to sustain its growth momentum picked up in FY’14, we expect Camlin to deliver over 25% revenue growth in FY’15. Based on annualized consolidated PAT margin of 5.50% (same as in FY’14); its FY’15 EPS works out to be Rs 7.50. Historically it has traded in P/E band of 20x to 30x (on ttm basis). Valuing the company at P/E multiple of 20x for FY’15 the target stock price comes at Rs 150.

Download Camlin Fine Science Research Report By IndiaNivesh