Buy This Textile Sector Stock For Gains Up To 47%: Anand Rathi

Anand Rathi in his latest report has given a buy call to the stock of Rupa & Company Ltd for a target price of Rs 500 with the likely return of 47%. It is a company with low debt and has a market capitalization of Rs 2,676 crore. The company witnessed QoQ revenue decline of 52.01%, which is lowest in the last 3 years.

Rupa & Company Ltd Stock Outlook

The current market price of the stock is Rs 336 apiece. According to Anand Rathi, if you buy the stock at its current market price, it offers the potential to surge to Rs 500 with a potential return of 47%. The stock's 52-week high is Rs 585 apiece and 52-week low is Rs 300 apiece.

Rupa & Company Ltd Market Capitalization

The stock has a market capitalization of Rs 2,675.21 crore.

Rupa & Company Ltd Return

The stock has given a return of 85% in last 3 years. The stock has fallen 22% in 1 year and 28% in 5 years.

Rupa & Company Ltd EBITDA

On profitability front, the EBITDA from operations for the quarter declined by 56.1% year-on-year to ₹185 million with an operating margin of 8.6%. The company reported PAT of ₹125 million, declined by 57.3% year-on-year with a net margin of 5.8% translating into EPS of ₹1.57 per share for the quarter.

Rupa & Company Ltd Financials

The company reported under performance during the quarter under review as revenue from operations declined by 1.5% YoY to ₹2,147 million & volume de-growth by more than 15%. Primary reason for this under performance according to the management is due to price hike and tightening of credit policy of the company in key few key rural areas of Bihar, Rajasthan, UP. However, the management believes the right credit culture is in the long term interest of the company.

Rupa & Company Ltd Valuation

According to Anand Rathi, "Given the company's extensive range of branded products across all segments, strong balance sheet and attractive valuations. We maintain our BUY rating on RUPA, with a revised target price of ₹500 per share.

Rupa & Company Ltd About

Rupa & Company Limited is one of the leading and largest knitwear brand in India. The Company is present across the entire value chain in the knitted garment space offering a gamut of products from innerwear to fashion wear. It is engaged in the manufacturing, marketing, selling and distribution of men's and women's innerwear, thermal wear and fashion wear across economy, mid-premium, premium and super-premium categories.

Disclaimer

The above stock was picked from the brokerage report of Anand Rathi. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution. Greynium Information Technologies, the author, and the brokerage house are not liable for any losses caused as a result of decisions based on the article.