Arihant Capital has given Buy recommendation for Heranba Industries with a target price of Rs. 1073 in its research report issued on Feb 01, 2022
Arihant Capital’s research report on Heranba Industries
Heranba Industries Ltd. is a crop protection chemical manufacturer, exporter and marketing company. The manufacturing facilities are located in Vapi and at Sarigam near Vapi. It is currently expanding its capacity at Sarigam and also possess additional land bank at Saykha, Dahej for future capacity expansion. The company announced its Q3FY22 results which were largely in-line with our estimates. Operating margins recovered during the quarter and is trending in the guidance band of the management, which is a key positive for the company. Also, inventory and receivables management improved during the quarter compared to Q2FY22.
We believe that these drivers will facilitate the company’s topline to grow by 18-20% going forward while maintaining the margins in the 18-20% range. Considering the future growth drivers, we continue to value the company at a P/E multiple of 15x its FY24E EPS of INR 71.6 and maintain our Target Price of INR 1,073 per share. Accordingly, we reiterate our BUY rating on the shares of Heranba Industries Ltd.
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At 16:00 hrs Heranba Industries was quoting at Rs 708.40, up Rs 8.85, or 1.27 percent.
It has touched an intraday high of Rs 711.55 and an intraday low of Rs 695.60.
It was trading with volumes of 6,108 shares, compared to its thirty day average of 12,077 shares, a decrease of -49.42 percent.
In the previous trading session, the share closed down 2.35 percent or Rs 16.85 at Rs 699.55.
The share touched its 52-week high Rs 944.95 and 52-week low Rs 602.85 on 05 March, 2021 and 06 April, 2021, respectively.
Currently, it is trading 25.03 percent below its 52-week high and 17.51 percent above its 52-week low.
Market capitalisation stands at Rs 2,834.55 crore.