Angel Broking has a buy call on Siyaram Silk Mills (SSML) with a target price of Rs 851.

The current market price of Siyaram Silk Mills is Rs 605.05.

Time period given by the brokerage firm is one year when Siyaram Silk Mills price can reach defined target.

SSML has strong brands which cater to premium as well as popular mass segments of the market.

Further, SSML entered the ladies' salwar kameez and ethnic wear segment.

Going forward, perhaps the company would be able to leverage its brand equity and continue to post strong performance.

The company has a nationwide network of about 1,600 dealers and business partners. It has a retail network of 160 stores and plans to add another 300-350 stores going forward.

Further, the company's brands are sold across 3,00,000 multi brand outlets in the country.

Angel Broking expects SSML to report a net sales CAGR of about 12 per cent to about Rs 1,981 crore and adjusted net profit CAGR of about 16 per cent to Rs 123 crore over FY2017-19E on back of market leadership in blended fabrics, strong brand building, wide distribution channel, strong presence in tier II and tier III cities and emphasis on latest designs and affordable pricing points.

At the current market price, SSML trades at an inexpensive valuation.