Moneycontrol PRO
Check Credit Score
Check Credit Score
HomeNewsBusinessStocks

Buy Insecticides (India) target of Rs 1170: Sharekhan

Sharekhan is bullish on Insecticides (India) has recommended buy rating on the stock with a target price of Rs 1170 in its research report dated August 17, 2022.

August 19, 2022 / 03:37 PM IST
The research firm ICICI Securities believes earnings of apparel brands and retail companies under their coverage may surprise positively from Q3FY22E as the likely demand recovery may result in better than expected margin performance. Some of the costs savings achieved during pandemic may sustain and coupled with high operating leverage may lead to higher than pre-covid margins from Q3FY22E.  Stocks like Trent, V-Mart and Aditya Birla Fashion and Retail are the preferred picks backed by their strong and consistent track record of execution.

The research firm ICICI Securities believes earnings of apparel brands and retail companies under their coverage may surprise positively from Q3FY22E as the likely demand recovery may result in better than expected margin performance. Some of the costs savings achieved during pandemic may sustain and coupled with high operating leverage may lead to higher than pre-covid margins from Q3FY22E.  Stocks like Trent, V-Mart and Aditya Birla Fashion and Retail are the preferred picks backed by their strong and consistent track record of execution.

 
 
live
  • bselive
  • nselive
Volume
Todays L/H
More

Sharekhan's research report on Insecticides (India)

In-line operating profit of Rs. 58 crore (up 10% q-o-q) as stronger-than-expected revenue growth of 20% y-o-y was offset by a miss in margins. PAT of Rs. 38 crore (up 9.6% y-o-y) was 2% above our estimate due to lower-than-expected tax rate. Strong revenue growth was led by 21%/31% y-o-y revenue growth from B2C/B2B business. OPM miss of 87 bps was due to lower-than-expected gross margin and FX loss of Rs. 6.5 crore. Adjusted OPM of 11.6% was slightly better than our estimate of 11.3%. Management maintained its double-digit (18-20% y-o-y) revenue growth and margin guidance of a 100 bps rise for FY23. It expects a similar growth momentum in FY24. However, the company lowered export revenue guidance by 25% to Rs. 150 crore.


Outlook

We maintain a Buy on Insecticides (India) Limited with a revised PT of Rs. 1,170 as we expect a strong 34% PAT CAGR over FY22-FY24E. Valuation of 13.7x/10.4x its FY2023E/FY2024E EPS is attractive.

For all recommendations report, click here

Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

Insecticides (India) - 180822 - khan

Broker Research
first published: Aug 19, 2022 03:37 pm

Discover the latest business news, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!

Advisory Alert: It has come to our attention that certain individuals are representing themselves as affiliates of Moneycontrol and soliciting funds on the false promise of assured returns on their investments. We wish to reiterate that Moneycontrol does not solicit funds from investors and neither does it promise any assured returns. In case you are approached by anyone making such claims, please write to us at grievanceofficer@nw18.com or call on 02268882347