Uniparts India may deliver 67% return in 18 months post listing, suggests Ventura’s bull case scenario

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Ventura Securities, which has ‘Subscribe’ rating on the ongoing Uniparts India IPO, has placed an 18-month base price target on the stock at Rs 711, an upside of 23.2 per cent to the IPO price. The domestic brokerage has a bull case target of Rs 964 (67 per cent upside potential) and a bear case target of Rs 449 (22.2 per cent downside potential) for the stock.

Till 12.30 pm, the IPO had attracted bids for 20,07,900 shares, which was 20 per cent of the total issue size of 1,01,37,360 shares. Several brokerages including Nirmal Bang, Religare Securities, Hem Securities and KRC Choksi Shares & Securities have also ‘Subscribe’ rating on the issue.

With a gradual recovery in the global economy, rising infrastructure spending in the US, rising farm incomes, a shift to manufacturing in India, Uniparts is expected to post revenue growth of 12.5 per cent, EBITDA growth of 12 per cent and PAT growth of 13.5 per cent, Ventura said. can provide. per cent, over FY22-25 in its base case scenario.

Read also: Sharp fall in Uniparts India GMP: Should you still subscribe to the IPO?

It sees sales of Rs 1,747 crore, EBITDA of Rs 377 crore and PAT of Rs 247 crore in FY25. That said, it sees EBITDA margin shrinking 26 bps to 21.6 per cent by FY20 due to input cost pressure. Net margin is expected to improve by 40 bps to 14.2 per cent due to reduction in debt burden.

In its bull case scenario, Ventura sees FY25 revenue for Uniparts India at Rs 2,000 crore, a CAGR of 17.7 per cent over FY22-FY25. It sees a net margin of 14.5 percent.

“We assume FY25 revenue of Rs 1,500 crore (CAGR of 6.9 per cent over FY22-25) and net margin of 13.5 per cent and FY25 P/E of 10 times, resulting in a bear price target of Rs 449 per share. (IPO) a decline of 22.2 per cent from the value),” it said.

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