1 SHK share price target reports by brokerages below. See what is analyst's view on SHK 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 estimate ~21% PAT CAGR on the back of better operational performance. Considering the expected strong growth in profit- ability, healthy balance sheet, improving return ratios and good corporate governance practices, we are optimistic about the long-term growth prospects of the company. At the CMP (INR 130), the stock is trading at 18.0x its FY20E EPS of INR 7.2 and 14.5x its FY21E EPS of INR 8.9. Global peers are trad- ing at PEG ratio of 2x (2yr CAGR), as they enjoy better margin and global leadership position compared to SHK, we apply 50% discount to global peers, while valuing and assign 1x PEG (P/E of 21x of Its FY21E earnings). We initiate coverage on the stock & recommend ‘BUY’ rating with a target price of INR 188 per share.
In view of the volatility in earnings over the last four quarters and a weak 3QFY19, we take a conservative stance and cut our PAT estimates by 22% for FY20E/FY21E. We expect gradual recovery and sales/PAT CAGR of 16%/22% over FY19E-21E. We value the stock at 22x FY21E consol. earnings of INR9.4/share. Maintain Buy with a revised target price of INR207/share.
SOURCE: Data from D'Market via Quandl. Intraday data delayed 15 minutes.
DISCLAIMER: Information is provided "as is" and solely for informational purposes, not for trading purposes or advice, and may be delayed. Information herein should be regarded as a resource only and should be used at one's own risk. This is not an offer to sell or solicitation to buy any securities and FrontPage will not be liable for any losses incurred or investment(s) made or decisions taken/or not taken based on the information provided herein.