Buy Welspun India For A Target Of Rs 1,020; Apar Industries Has Sound Fundamentals: Devang Mehta, Anand Rathi Financial Services

In an interview with ET Now, Devang Mehta, Anand Rathi Financial Services, shares his wealth-creating ideas. Excerpts:

Devang Mehta: In fact, we have been suggesting this stock since some time and the stock has again corrected because generally the market has corrected and this is among our favourite picks. Now, this is among the top three home textile manufacturers in the world with supply to at least around 50 countries and it also supplies to around 14 top retailers across the world including Walmart, JC Penney amongst others as well.

The company came up with a good set of numbers, around 18% revenue growth on YoY basis as well as the EBITDA margins also. So, wonderful growth of around 25.9%. With capacity expansion also quite underway, and capacity is also running close to full utilisation in terms of its towels and its sheets business, the company is going to do pretty well and we feel that the EBITDA margin of 25% also is quite sustainable.

The company can also report an EPS of around 62.8 or 63 for the current year, which discounts the stock at around 12 times and we feel that this business is a wonderful business of export and textile so we have price target of around Rs 1,020 for the Welspun India.

Source:- economictimes.indiatimes.com