CMP: 77.3
Recommendation: Buy
Hanung toys is my most recent pick. It is the only Indian company in the stuffed toys segment and exports stuffed toys to retail chains. Apart from toys it is a leading manufacturers and exporters of home furnishing. Hanung has the license for Walt Disney characters in India.
The company has a Book value of Rs 123.76 which is way below the CMP of 77.3.
The F09 revenues grew by almost 30% to Rs 637 crores. The company has an EBIDTA of 16% and PAT margin at 10.39%. The EPS is at 24.88 and the PE stands at close to 3. The company has a healthy order book of close to Rs. 1200 crores and has clients like Walmart, Metro, lifestyle. The Stock has a 52 week high of Rs 201. At a price of Rs 77 the stock looks to be undervalued and can easily command a PE of 5 valuing the stock at Rs 120.
Disclaimer: All the views expressed in this blog are based on my analysis and investor's discretion is required before investing in the above stocks
Friday, September 4, 2009
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