S H Kelkar rallies 8% after Edelweiss initiates coverage with buy, sees 30% upside
The fragrance manufacturer is eyeing entry in high growth markets in South East Asia and Middle East and North African regions, Edelweiss said.
Moneycontrol News
S H Kelkar & Company share price surged more than 8 percent intraday Tuesday after Edelweiss has initiated coverage with a buy call on the stock.
The research house expects the stock to hit a target price of Rs 348 per share, implying a 30 percent potential upside.
It cited surging FMCG demand, ramping-up existing capacities, revenue mix changing in favour of flavours, cost optimisation and sustained R&D.
Edelweiss sees revenue & profit CAGR of 9 percent & 21 percent respectively, over FY17-19 while its EBITDA margin is expected to expand by 267 basis points over FY17-19.
The research house feels the stock is trading at significant discount to growth adjusted valuation multiples of global peers and own historical valuations.
The fragrance manufacturer is eyeing entry in high growth markets in South East Asia and Middle East and North African regions, Edelweiss said.
Its bull case price target for the stock is Rs 440 per share as it expects fragrance and flavours business to grow 15 percent and 25 percent respectively for FY19.
At 13:55 hours IST, the stock price was quoting at Rs 284.00, up Rs 16.15, or 6.03 percent on the BSE.
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