Bhartiya International Ltd has been India's largest exporter of leather apparel for more than fifteen years.
The company achieved a turnover of Rs. 1364.15 mn for the 2nd quarter of the FY 2016-17 as against Rs. 1402.78 mn in the corresponding quarter of the previous year.
During the 2nd quarter, net profit increased by 5.03% to Rs. 62.07 mn from Rs. 59.10 mn in the corresponding quarter ending of previous year.
During the quarter, EBIDTA stood at Rs. 139.40 mn as against Rs. 125.80 mn in the corresponding period of the previous year, up by 10.81%.
Profit before tax (PBT) increased by 3.75% to Rs.90.57 mn in Q2 FY17 from Rs. 87.30 mn in the corresponding quarter of the previous year.
EPS of the company stood at Rs. 5.30 in Q2 FY17 against Rs. 5.27 in the corresponding quarter of the previous year.
In H1 FY17, Net sales stood at Rs. 2347.79 mn as compared to Rs. 2284.89 mn in H1 FY16.
For six month period of FY17, net profit stood at Rs. 93.77 mn as against Rs. 89.05 mn for the Six month ended of previous financial year.
Net Sales and PAT of the company are expected to grow at a CAGR of 13% and 21% over 2015 to 2018E, respectively.
OUTLOOK AND CONCLUSION:
At the current market price of Rs. 487.00, the stock P/E ratio is at 32.32 x FY17E and 28.71 x FY18E respectively.
Earning per share (EPS) of the company for the earnings for FY17E and FY18E is seen at Rs. 15.07 and Rs. 16.96 respectively.
Net Sales and PAT of the company are expected to grow at a CAGR of 13% and 21% over 2015 to 2018E respectively.
On the basis of EV/EBITDA, the stock trades at 18.18 X for FY17E and 16.98 X for FY18E.
Price to Book Value of the stock is expected to be at 2.78 x and 2.53 x for FY17E and FY18E respectively.
Hence, we say that, we are Overweight in this particular scrip for Medium to Long term investment.
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