The Company remains committed in its long-term aspiration of delivering sustainable and profitable volume led growth, building on strong brand equity and accelerated focus on emerging businesses and implement of government’s PLI scheme for textile sector. Despite a strong capex plan to support growth in key segments, net debt is expected to remain at Rs. 2,400 crore as large capex funding will be done by improving cash flows. It is expected that the stock will see a price target of Rs.152 in 8 to 10 months’ time frame on current P/BVx of 3.64x and FY22 BVPS of Rs.41.85.
In this transformational environment, management remains focused on the execution of existing portfolio – reflected in construction and collection progress of various projects. The company’s continued strong momentum in operational performance. Both pre-sales and collections witnessed sturdy growth along with high collections efficiency. Moreover its balance sheet strength, established track record and operational cash flow visibility will continue to provide strength to the company. Thus, it is expected that the stock will see a price target of Rs.435 in 8 to 10 months’ time frame on target P/BV of 2.10x and FY22 BVPS of Rs.207.26.
Above calls are published in “Wise Money Issue No. 801”
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