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India Equity Research Reports, IPO and Stock News
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RECO : BUY TP : Rs160
Investment Rationale
§ Well enriched business model - with multiple drivers
§ Cosmetics and Perfumery to emerge as a strong growth driver - Expect segment revenues to grow at 15.2%
CAGR (FY10-12E) to Rs6.4 bn in FY12E
§ PGL to reduce focus on pharmaceutical business - Expect revenues to decline by 3.5% CAGR to Rs3.1bn during
FY10-12E
§ Momentum in SF&B to continue - Expect 15.5% revenue CAGR during FY10-12E
§ Enrichment of Sales Mix - to improve profitability
§ Restructuring exercise to bear fruit
§ Already incurred capex - now in harvesting stage
§ Eyeing positive cash flow - improvement in balance sheet
Valuations
§ At CMP, the stock is trading at 11.4X FY11E and 6X FY12E consolidated earnings of Rs9.9 and Rs18.7 per
share respectively
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
RECO : BUY TP : Rs160
Investment Rationale
§ Well enriched business model - with multiple drivers
§ Cosmetics and Perfumery to emerge as a strong growth driver - Expect segment revenues to grow at 15.2%
CAGR (FY10-12E) to Rs6.4 bn in FY12E
§ PGL to reduce focus on pharmaceutical business - Expect revenues to decline by 3.5% CAGR to Rs3.1bn during
FY10-12E
§ Momentum in SF&B to continue - Expect 15.5% revenue CAGR during FY10-12E
§ Enrichment of Sales Mix - to improve profitability
§ Restructuring exercise to bear fruit
§ Already incurred capex - now in harvesting stage
§ Eyeing positive cash flow - improvement in balance sheet
Valuations
§ At CMP, the stock is trading at 11.4X FY11E and 6X FY12E consolidated earnings of Rs9.9 and Rs18.7 per
share respectively
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