Khambatta Securities has given Buy recommendation for Captain Polyplast with a target price of Rs. 56 in its research report issued on Jun 04, 2021

Khambatta Securities’ research report on Captain Polyplast

Captain Polyplast Limited (CPL) is a micro-irrigation solutions provider and manufacturer/supplier of micro-irrigation systems (MIS). A key driver of the Rs 6,000 crore-worth micro-irrigation industry is favourable government policies including subsidies on MIS. The very low of penetration of MIS in India (5.5%) presents robust growth opportunities. With a projected life of 7 years for MIS, the penetrated section of the micro-irrigation market also presents opportunities driven by replacement demand.

Outlook

The CPL stock currently trades at an attractive forward P/E level of 11.7x FY23E EPS. Assigning a target multiple of 17.0x FY23E EPS, our valuation generates a price target of Rs 56, informing a BUY rating with an upside potential of 45%.