“Varun Industries Ltd. is one of the largest conglomerate corporate houses of stainless steel kitchenware and houseware products. VIL plans to establish 2 more plants at Rohat of steel flat plant and at Bagalkot of pig iron with an investment of Rs.850 cr and Rs.2100 cr respectively. During the quarter ended, the robust
growth of Net Profit is increased by 59.45% Rs. 185.10 million. Varun Energy Corporation, a group of Varun Industries, to invest Rs 300 cr to set up a rare earth ore plant discovered at Madagascar mines in Africa. Net Sales and PAT of the company are expected to grow at a CAGR of 42% and 34% over 2010 to 2013E respectively. VIL is the only Indian Company to have planned for full backward integration for stainless steelware business.”
"Varun Industries has reported net profit of Rs 185.10 million for the quarter ended on June 30, 2011 as against Rs. 116.09 million in the same quarter last year, an increase of 59.45%. It has reported net sales of Rs 9236.69 million for the quarter ended on June 30, 2011 as against Rs 4045.90 million in the same quarter last year, a rise of 128.30%. Total income grew by 127.68% to Rs 9285.24 million from Rs.4078.15 million in the same quarter last year. During the quarter, it reported earnings of Rs 6.36 a share.”
“At the current market price of Rs.252.00, the stock is trading at 16.44 x FY12E and 12.88 x FY13E respectively. Earning per share (EPS) of the company for the earnings for FY12E and FY13E is seen at Rs.15.35 and Rs.19.59 respectively. Net Sales and PAT of the company are expected to grow at a CAGR of 42% and 34% over 2010 to 2013E respectively. On the basis of EV/EBITDA, the stock trades at 3.88 x for FY12E and 3.34 x for FY13E. Price to Book Value of the stock is expected to be at 2.62 x and 2.18 x respectively for FY12E and FY13E. 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 285 for Medium to Long term investment,” says Firstcall research report.
....more info
growth of Net Profit is increased by 59.45% Rs. 185.10 million. Varun Energy Corporation, a group of Varun Industries, to invest Rs 300 cr to set up a rare earth ore plant discovered at Madagascar mines in Africa. Net Sales and PAT of the company are expected to grow at a CAGR of 42% and 34% over 2010 to 2013E respectively. VIL is the only Indian Company to have planned for full backward integration for stainless steelware business.”
"Varun Industries has reported net profit of Rs 185.10 million for the quarter ended on June 30, 2011 as against Rs. 116.09 million in the same quarter last year, an increase of 59.45%. It has reported net sales of Rs 9236.69 million for the quarter ended on June 30, 2011 as against Rs 4045.90 million in the same quarter last year, a rise of 128.30%. Total income grew by 127.68% to Rs 9285.24 million from Rs.4078.15 million in the same quarter last year. During the quarter, it reported earnings of Rs 6.36 a share.”
“At the current market price of Rs.252.00, the stock is trading at 16.44 x FY12E and 12.88 x FY13E respectively. Earning per share (EPS) of the company for the earnings for FY12E and FY13E is seen at Rs.15.35 and Rs.19.59 respectively. Net Sales and PAT of the company are expected to grow at a CAGR of 42% and 34% over 2010 to 2013E respectively. On the basis of EV/EBITDA, the stock trades at 3.88 x for FY12E and 3.34 x for FY13E. Price to Book Value of the stock is expected to be at 2.62 x and 2.18 x respectively for FY12E and FY13E. 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 285 for Medium to Long term investment,” says Firstcall research report.
....more info