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Buy Jindal Worldwide for a target of Rs124 -
Buy Jindal Worldwide for a target of Rs124
Firstcall India Equity | Published: 17 Dec, 2014  | Source :

Jindal Worldwide Ltd is the leader in Indian Textile Industries and is operating in Indian contingent as well as having its international collaboration and clients in north and South America to Europe, Africa and Middle-East Asia.

The company has achieved a turnover of Rs. 2114.42 million, an increase of 7.87% y-o-y for the 2nd quarter of the financial year 2014-15 as against Rs. 1960.19 million in the corresponding quarter of the previous year.

In Q2 FY15, Net profit stood at Rs. 68.25 million, as against Rs. 68.62 million in the corresponding  quarter of the previous year.

In Q2 FY15, Operating profit or EBIDTA grew by 16.90% y-o-y of Rs. 246.09 million as against Rs.210.51 million in Q2 FY14.

Profit before tax (PBT) at Rs. 86.43 million in Q2 FY15 compared to Rs. 85.45 million in Q2 FY14, registered a growth of 1.15%.

For half year end of FY15, the company registered a growth of 11.59% in Net sales to Rs. 4285.54 million from Rs. 3840.50 million for half year ended of FY14.

Operating profit grew by 28.48% to Rs 491.99 million in the end of H1 FY15 from Rs 382.92 million in the end of H1 FY14.

Net Sales and PAT of the company are expected to grow at a CAGR of 18% and 31% over 2013 to 2016E respectively.


Outlook and Conclusion

At the current market price of Rs. 109.15, the stock P/E ratio is at 7.86 x FY15E and 7.13 x FY16E respectively.

Earning per share (EPS) of the company for the earnings for FY15E and FY16E is seen at Rs.13.88 and Rs.15.30 respectively.

Net Sales and PAT of the company are expected to grow at a CAGR of 18% and 31% over 2013 to 2016E respectively.

On the basis of EV/EBITDA, the stock trades at 1.90 x for FY15E and 1.55 x for FY16E.

Price to Book Value of the stock is expected to be at 1.31 x and 1.11 x respectively for FY15E and FY16E.

We expect that the company surplus scenario is likely to continue for the next three years, will keep its growth story in the coming quarters also.

We recommend ‘BUY’ in this particular scrip with a target price of Rs.124.00 for Medium to Long term investment.


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About Firstcall India Equity

Firstcall India Equity of Firstcall India Equity Advisors Pvt. Limited (FIEA), is a leading financial services provider in India and a SEBI Registered Category-I Merchant Banker. FIEA is a culmination of a credible Equity Research Capabilities, Long Standing Relationship with leading FIIs, DFIs, MFs, Overseas Pension Funds etc. The company’s research caters to the needs of the largest news wire and media houses of the world namely Reuters, Thomson, Capital IQ,, Emerging Markets Euro money Publications-UK. The Company is among the major players in the Debt and Equity markets.

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Disclaimer: The author has taken due care and caution to compile and analyse the data. The opinions expressed above are only the views of the author, and not a recommendation to buy or sell. Neither the author nor accept any liability whatsoever arising from the use of any of the above contents.

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