Co’s key customers include leading RAC brands such as Daikin, Hitachi, LG, Panasonic, Voltas & Whirlpool. Co’s customers commands around 75 % share in Indian RAC market in Fiscal 2017. The Indian RAC market volumes are expected to grow at a CAGR of 12.8% from Fiscal 2017 to Fiscal 2022. Due to the current low penetration of 4%, the Indian RAC market presents huge growth opportunity (Source: F&S Report). Due to factors such as the growth of Indian economy, population, disposable income and urbanization as well as changing lifestyle trends, shortening of replacement cycle, easy access to credit, longer hot weather conditions, better availability of electricity, increasing affordability of operating a RAC due to launch of energy efficient models and the growing advantage of domestic manufacturers compared to import markets co is well placed not only to benefit from the growth in domestic market but also expand its export footprint.
The co is bringing the issue at p/e multiple of 49 on annualized H1FY18 eps at higher price band of Rs 855-859/share. Co being market leader in RAC OEM/ODM industry in India have reputed clientele with strong track record of financial performance.Looking after strong future prospects of co with decent fundamentals, , we recommend “Subscribe” on issue.
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