Multi Baggers
Himatsingka Sei
BSE ID : 514043 NSE ID : HIMATSEIDE
RECOMMENDED PRICE 59.95
PEAK FROM RECO 444.35 641.20%
CURRENT PRICE 140.95 Resource id #14
The Himatsingka Group is a vertically integrated Home Textile major with a global footprint. We initiate a 'BUY' on the stock with a target price of Rs. 80 with the medium to long term investment horizon.
Himatsingka Seide
The Himatsingka Group is a vertically integrated Home Textile major with a global footprint. It focuses on the manufacturing, retailing and distribution of Home Textile products.
The company has registered robust results for the quarter ending September 2013. The consolidated revenues from operations grew by 16.3 percent to Rs.549.79 crores vs. Rs.477.70 cr. in the corresponding quarter last year. Operating profit climbed sharply by 31 percent at about Rs.54.77 crores as against Rs.41.80 crores in the previous year quarter; driven by cost optimization measures. The net profit skyrocketed at Rs.18.05 crore for the quarter as compared to Rs.9.36 crore (pre-exceptional). EPS for the quarter stood at Rs 1.83.
Manufacturing revenues represented by the Drapery/Upholstery and Bedding Divisions grew by 35.1 percent to Rs.251.22 cr. vs. Rs.185.94 cr in the like quarter last year; helped by higher volumes in Bed Linen and improved constant currency realization per meter.
Distribution revenues in North America the portfolio of 6 brands including Calvin Klein Home and Barbara Berry grew by 13.7 percent to Rs.452.69 cr. vs. Rs.398.23 cr in the corresponding quarter previous year. Revenues from Europe represented by the "Bellora" brand showed a growth of 38.2 percent to Rs 30.26 vs. Rs 21.89 cr in the corresponding period last year. Revenues from India/Middle East/ South East Asia represented through the Atmosphere brand grew by 10 percent at aR.14.05 cr as against Rs 12.78 cr in Q2FY13.
Valuation
With increasing geographical presence, strong brands, efficient cost optimization measure and improved realisation; Himatsingka Seide Ltd. revenue visibility looks clear. We believe the company is trading at an attractive valuation at 8.57x and 5.49x of FY14EPS of Rs 7.09 and FY15EPS of Rs.11.07. We initiate a 'BUY' on the stock with a target price of Rs 80 (appreciation of about 32 percent) with the medium to long term investment horizon.
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HimatsingkaSeide_HemSec_Multibagger.pdf
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