Nirmal Bang's Stock Idea
Nirmal Bang is Bullish on IFB Industries Ltd.
Idea Submitted on 24Jan,2018
  • 77 Total Ideas
  • 2 Active Ideas
  • 75 Closed Ideas
  • 0 Friends
  • 7 Followers
  • Avg. Returns
     2.1%
    Rank
    17
    Success Rate
      50.65%
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      Buy IFB Industries Idea
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      Idea Status :  Closed
    Stop Loss Triggered
    Idea Closed at 1047.3 (17Jul,18 12:41:pm)
     Time Frame
    1year
     Start Price
    1400
     Target Price
    1900
     Stop Loss
    1050
     Projected Gain
    500 (35.71% Upside)
     Returns Achieved
    -352.7     -25.19%
     Analysis
    We expect IFB to post 23.7% revenue CAGR over FY17-FY20E. A 500bps EBITDA margin expansion over FY17-FY20E will translate into 53.2% EBITDA CAGR and 65.4% earnings CAGR over FY17-FY20E. This will lead to a significant improvement in IFB’s financial profile with stronger return ratios (RoE/RoCE rising from 11.5%/11% in FY17 to 26.5%/32.5% in FY20E, respectively) and higher free cash flow (Rs3bn over FY17-FY20E compared to Rs296mn over FY14-FY17). The stock has traded at an average P/E of 36x over the past three years. We have valued IFB using the SOTP method by assigning a P/E of 36x FY20E earnings to its home appliance business (Rs1,810) and 15x FY20E earnings to its fine blanking business (Rs90). We initiate coverage on the stock with a Buy rating and a target price of Rs1,900, up 36% from the CMP. View Research Report (Time period & Stop Loss Auto Inserted)

    Link to Report: READ FULL REPORT

     Stock Price Movement (EOD Basis)
     C.M.P IFB Industries
    655.05
    Sentimeter
    Buy Calls: 1 Sell Calls: 0
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