HSIL Research Report By Mehta Equities

1) Leader in Sanitaryware Industry: HSIL has leading position with positive brand recall to provide edge HSIL has 40% market share in organised sanitaryware industry. Well-known brands like QUEO Hindware Art and Benevalve, enable HSIL to cater to varied segments of the market. HSIL has good opportunity to tap the growing sanitaryware industry in the country which is witnessing around 15-16% pa growth in demand and high replacement demand which is around 8-10% pa in domestic market compared to 80% in developed markets.

Considering the overall rationales, we believe HSIL stands out to be the leading player to capture the rising demand of sanitaryware in the organised space. With Govt focus on sanitation, high replacement market and expansion plans in place; HSIL gives a good investment opportunity for healthy returns. At the CMP, the stock is trading at a valuation of 17x to FY16EPS of Rs 18.8. Hence, we recommend to “Accumulate/Buy” with a target price of Rs 600 with medium to long term investment horizon and also expect the stock to be re-rated going forward.

Download HSIl Mehta Equities Research Report