Building material cos set to report strong growth; check which stocks to buy, hold, sell
时间:2024-09-29 04:45:57 阅读(143)
Building material companies with strong traction in real estate, agriculture, and infrastructure, are expected to witness a healthy volume growth in the coming months, Prabhudas Lilladher said in a research note. The brokerage report has identified Prince Pipes stock as their top pick considering a favorable and healthy volume. “Considering healthy volume growth of ~14% post-Q1FY24 (next 9MFY24), as April & First week of May were impacted post migration to global ERP system. We estimate FY23-25E Sales/EBITDA/PAT CAGR of 12.5%/41.3%/60.6% with volume CAGR of 12.3% and EBITDA margin of 13.5%/14.6% in FY24/FY25E,” said the report regarding Prince Pipes.Correction in raw material prices and power & fuel expenses to restore margins
The buoyancy in the real estate market (despite interest rate hike), Government focus on housing, sanitation, and infrastructure, improvement in the agriculture segment, pick up in export, and increase in branded/large players’ market share, are some of the factors that are expected to positively influence the sales growth of the industry. In addition to that, the correction in the raw material prices and power and fuel expenses are also expected to bring the margins back to the normal level (+250bps YoY) along with EBITDA/PAT growth of 20.8%/21.1% YoY (on a high base), the report added.
Prince Pipes: Downgrade to ‘Accumulate’; Target Price: Rs 718
Supreme Industries: Downgrade to ‘Accumulate’; Target Price: Rs 3, 245
Astral: Downgrade to ‘Hold’; Target Price: Rs 1955
Kajaria: Downgrade to ‘Hold’: Target Price: Rs 1,264
CERA: Downgrade to ‘Hold’; Target Price: Rs 7,805
猜你喜欢
- Nifty to jump back above 18000 or correction to continue; 7 things to know before share market opening bell
- MF industry assets surge by Rs 11 lakh crore in 2023; crosses Rs 50 lakh crore mark
- Meet K Dinesh- Former government employee with Rs 19,980 crore net worth, co-founder of Rs 6,17,000 crore company, and Narayana Murthy’s associate
- Nifty, Sensex rise nearly 1% amid positive global cues, volatility to continue; what should investors do-
- Mcap of eight of top-10 most valued firms climb Rs 1
- Nifty to trade range-bound or top 19400- See GIFT Nifty, FII data, F&O ban, crude, more before market opens
- MCX gold trend likely to remain higher, but traders must wait for dip around 51500-51200 for fresh trade
- Sebi returns OYO’s draft IPO papers; asks to refile with updates
- Memes that wowed- 2023 was a big year for memes as they became a powerful tool for content creators