Buy VIP Industries; target of Rs 573: Firstcall Research - Moneycontrol.com -

Firstcall Research is bullish on VIP Industries and has recommended buy rating on the stock with a target of Rs 573 in its September 4, 2010 research report.

“VIP Industries has a 60% market share in organized market. During the quarter ended, the robust growth of net profit is increased by 60.02% Rs 322.00 million. At the current market price of Rs 484.65, the stock is trading at 18.84x FY11E and 16.06 x FY12E respectively. Price to book value of the stock is expected to be at 5.52 x and 4.06 x respectively for FY11E and FY12E. Earning per share (EPS) of the company for the earnings for FY11E and FY12E is seen at Rs 25.72 and Rs 30.17 respectively. Net Sales and PAT of the company are expected to grow at a CAGR of 15% and 69% over 2009 to 2012E respectively. On the basis of EV/EBITDA, the stock trades at 11.60 x for FY11E and 10.24 x for FY12E. The company has reduced its debt from 136 crore to 87 crore in the financial year 09-10. We expect that the company will keep its growth story in the coming quarters also. We recommend ‘BUY’ in this particular scrip with a target price of Rs 573 for medium to long term investment,” says Firstcall Research report.

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From: http://www.moneycontrol.com/news/recommendations/buy-vip-industries-targetrs-573-firstcall-research_483067.html