Up 200% in 1 year! Yes Securities still bullish on this stock; sees 50% upside

Shares of Acrysil Limited have delivered over 200 per cent return to its shareholders in the last one year. In the past one year, the share price jumped from Rs 230 to Rs 747.65, logging around 225 per cent return in this period.
 
An amount of Rs 5 lakh invested in this multibagger stock a year ago would have turned into Rs 16.25 lakh today.
 
With a market capitalisation of Rs 1,900 crore, the shares stand higher than 200 day moving averages but lower than 5 day, 20 day, 50 day and 100 day moving averages.
 
Long-term investors have made big gains by investing in this stock as it has surged over 5,000 per cent in the last ten years.
 
Brokerage house Yes Securities noted that Acrysil Limited registered strong revenue growth amid an overall slowdown due to 3rd wave of COVID‐19. Despite higher freight costs, the company was able to maintain its operating margins at 21.8 per cent. Demand continued to remain strong owing to higher spending for home improvements across geographies coupled with a revival in the domestic real‐estate segment. 
 
"In order to cater to the robust demand, Acrysil Ltd is enhancing their Quartz sinks capacity from 840,000 units to 1.2 million units by FY23. The company is also doubling its stainless steel sink capacity to 180,000 units by Q4FY22. Hence, we expect Acrysil’s Quartz/steel sinks to register 33 per cent/28 per cent CAGR over FY21‐FY24E respectively," it said.
 
"Acrysil Ltd is trading at 25.4x/20x on FY23E/FY24E EPS of Rs 30.2/38.3, respectively. We expect the company’s Revenue/EBITDA/PAT to grow by 33/33/37 per cent CAGR over FY21‐FY24E & ROE/ROCE to come in at 23.6/27.6 per cent in FY24E. We continue to value the company at 30x on FY24E EPS of Rs 38.3 & maintain our target price of Rs 1,150. We reiterate our 'BUY' rating on the stock," Yes Securities said in its report.
 
The company reported a healthy set of numbers for the quarter ended December 2021. The consolidated profit of the company jumped 43 per cent to Rs 17.26 crore for the quarter ended December 2021 as against a net profit of Rs 12.10 crore in the year-ago quarter. The company's net sales rose 46 per cent to Rs 128.02 crore during the quarter.
 
Commenting on the results, Chirag Parekh, Chairman & Managing Director, said, "Despite the ongoing third wave of Covid, we have not faced any slowdown in our demand. We have a strong order book ahead to fulfill. Demand has remained robust on account of increasing spends towards home improvement and aesthetic products and revival in housing demand and changed consumer behavior with focus on enhancing and beautifying their personal space and homes."
 
“Our expansion plan for Quartz kitchen sinks is progressing well and as per schedule and we expect it to be completed by the given timeline. Also, we are doubling our steel sinks capacity to 180,000 units and it is expected to be commissioned by Q4 FY22. All these capacity expansion will help the company to cater and serve domestic as well as international customers,” he added.
 
Acrysil is one of the only four global manufacturers of Quartz sinks via German technology. The company has diversified into stainless steel sinks, faucets, food waste disposer, and kitchen appliances like hobs & cook tops, oven, wine chillers and dishwashers. It presently exports to over 55 countries and plans to expand further by acquiring new customers and penetrating new geographies.