Talwalkars Better Value Fitness Q3FY17: Way2wealth reiterate BUY on the stock

Way2wealth | April 15, 2013, midnight


KEY RESULT HIGHLIGHTS


TaIwaIkar has reported its Q3FYI 7 results which were in line with our estimates. We reiterate BUY recommendation on the stock.


Q3FYI7 RESULT HIGHLIGHTS

  • Net Sales grew by I I.3% YoY to Rs 531mn.
  • EBITDA margins expanded by 19bp YoY to 49.9%.
  • PAT grew by 14% YoY to Rs 62mn.


VALUATIONS AND RECOMMENDATIONS


At CMP of Rs 222, TalwaIkars is currently trading at a PE of 7.9x FYi SE and EV/EBITDA of 3.8x FY1 8E. Given the Company's a) strong growth prospects given its leadership position in highly under penetrated and growing market b) 23% PAT CAGR over FY16-78E and c) average ROE of 15% through FY16-18E, we value the company at 12xFYl8E EPS with a target price of Rs 337. We reiterate a BUY rating on the stock.

 

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