Arihant Capital has given Buy recommendation for RPSG Ventures with a target price of Rs. 2903 in its research report issued on Feb 18, 2022

Arihant Capital’s research report on RPSG Ventures

RPSG Ventures in Q3FY22, Revenues exceeded expectations and came in at INR 1,681 cr against estimates of INR 1,547 cr. It increased by % YoY/-1% QoQ driven by the growth across the segment. However, the Gross Profit margin declined 76bps YoY/+13bps QoQ due to raw material cost pressure. EBITDA increased 43% YoY/20% QoQ and stood at INR 240 Cr and above the expectation of INR 181 Cr. EBITDA margin expanded by 302bps YoY/+175bps to 14.30%. The effective tax rate increased by 1209bps YoY to 29.35%. PAT stood at INR 97 cr against estimates of INR 34 cr and increased by 41% YoY/ 30% QoQ-PAT margin increased by 116 bps YoY/ increased 110 bps YoY to 5.77%.

Outlook

We maintain our Buy rating on the stock and value it on SOTP valuation for a target price of INR 2,483 per share (Bear/Lower case scenario), INR 2,903 per share (Base case scenario), and INR 3,199 per share (Best case scenario). We value FSL at 16x FY24 EPS of INR 10.8 for the Target Price of INR 174 per share. We maintain an Accumulate rating on the stock.

More Info

At 17:30 RPSG VENTURES was quoting at Rs 613.90, down Rs 27.45, or 4.28 percent.

It has touched an intraday high of Rs 630.05 and an intraday low of Rs 603.70.

It was trading with volumes of 2,113 shares, compared to its thirty day average of 4,332 shares, a decrease of -51.22 percent.

In the previous trading session, the share closed down 2.60 percent or Rs 17.15 at Rs 641.35.

The share touched its 52-week high Rs 1,147.15 and 52-week low Rs 290.00 on 20 September, 2021 and 26 February, 2021, respectively.

Currently, it is trading 46.39 percent below its 52-week high and 112.05 percent above its 52-week low.

Market capitalisation stands at Rs 1,627.54 crore.

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