5 HIMATSEIDE share price target reports by brokerages below. See what is analyst's view on HIMATSEIDE share price forecast, rating, estimates, valuation and prediction behind the target. You may use these research report forecasts for long-term to medium term for your investment or trades in 2020.
We have cut our EBITDA margin estimates for FY20 and FY21 by 130 and 190 bps, respectively and introduce estimates for FY22E factoring in impact of reduced duty benefits and challenges outside US. Based on this, we have cut our EPS estimates for FY20E and FY21E by 29% and 22%, respectively. Based on FY20E/21E/22E EPS of Rs 11.1 (vs Rs 15.7 earlier)/Rs /16.5 (Vs Rs 21.2 earlier)/ Rs 21.2, the stock is trading at PE of 10.3x/7x/5.4x, respectively. We maintain Buy on the stock with revised target price of Rs 180 (vs Rs 191 earlier), valuing the stock at forward multiple of 9x, as we roll forward our valuations on Dec 2021E.
Going forward, top priority of the company is to consolidate its home textiles portfolio as well as sweating its new capacities in terry towel and bed linen. In addition, based on improved cash flows, the company targets to reduce its debt. We believe that the challenges in luxury European brand and upholstery business would impact operating performance of FY20. Based on FY20E/21E EPS of Rs 15.7/21.2, the stock is trading at PE of 7.6x/5.7x, respectively. We maintain BUY on the stock with target price of Rs 191, valuing the stock at 9x FY21E EPS.
We believe that the challenges in luxury European brand and upholstery business and restructuring of the same expected in H2FY20 would impact operating performance of FY20. Further, towel facility may take 1-2 years before reaching optimal utilization and hence, next one year would be the year of consolidation. We have cut our margin estimates for FY20E by 100 bps factoring in higher operating cost and challenges outside US. We have assumed higher tax rates as the company is presently continuing with older tax rates and evaluating the new tax law. Based on this, we have cut our EPS estimates for FY20E and FY21E by 10-20%. Based on FY20E/21E revised EPS of Rs 15.7/21.2 (Vs Rs 19.6/23.6), the stock is trading at PE of 9.2x/6.8x, respectively. We maintain Buy on the stock with revised target price of Rs 191 (vs Rs 212 earlier), valuing the stock at 9x FY21E EPS.
We have assumed higher interest cost based on higher debt. Based on this, we have cut our EPS estimates for FY20E and FY21E by 21-22%. Based on FY20E/21E revised EPS of Rs 17.6/21.6, the stock is trading at PE of 7.7x/6.3x, respectively. We maintain Buy on the stock with revised target price of Rs 194 (vs Rs 290), valuing the stock at 9x (vs 10.5x) FY21E EPS.
We believe that higher raw material prices and lower realization will partially offset benefits from increased incentives in the EBITDA margin for FY20E. We have cut our margin estimates for FY20E and FY21E by 100-120 bps resulting in 8-9% reduction in our EPS estimates for FY20E-21E. Based on FY20E/21E revised EPS of Rs 22.3/27.5, the stock is trading at PE of 9x/7.3x, respectively. We maintain Buy on the stock with unchanged target price of Rs 290, valuing the stock at 10.5x FY21E EPS (as we roll forward to FY21E).
Based on FY19E/FY20E/21E EPS of Rs 19.8/Rs 24.2/Rs 30.1, the stock is trading at PE of 11.7x/9.5x/7.7, respectively. We initiate coverage on the stock with BUY rating and target price of Rs 290. We have valued the stock at 12x FY20E EPS of Rs 24.2, which is close to its last five years average forward PE of 11.6x.
SOURCE: Data from D'Market via Quandl. Intraday data delayed 15 minutes.
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