Indo Count Industries Research Report By Motilal Oswal
| Indo Count Industries Research Report By Motilal Oswal | |
| Company: | Indo Count Industries |
| Brokerage: | Motilal Oswal |
| Date of report: | June 21, 2016 |
| Type of Report: | Result Update |
| Recommendation: | Buy |
| Upside Potential: | 44% |
| Summary: | Focus on value-added products – Laying foundations for long-term growth, margin expansion |
| Full Report: | Click here to download the file in pdf format |
| Tags: | CAGR, ICNT, Maintain Buy, TP |
| Given its unique asset-light business model, ICNT enjoys robust and best-inclass capital efficiency. With its focus on high value, high margin products like fashion, institutional linen and utility bedding, we expect ICNT to post 19% revenue CAGR and 31% PAT CAGR over FY16-18. Focus on brands and increase in the revenue share of higher value products should entail higher realizations and margins. We expect 160bp margin expansion over FY16-18 to 23%. Maintain Buy with a TP of INR1,380 (12x FY18E EPS). |
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