TIMEX from AnandRathi
Stock to touch 40 soon. I am just following volumes and delivery percentages.
Strong buy for short term. Keep strict stoploss though.
Note: I bought good quantity at 27 and plan to sell at 40.
On 9/11/07, Danny wrote: > > > Anandrathi has increased the price target of TIMEX to 44 > > BUY > Retail > Timex Watches Limited > We are updating our report on the stock with a revised price target of > Rs 44 based on the excellent quarterly result and new initiative taken > by the company. However, we are revising our revenue estimates up by > 23% and 32% for FY08E and FY09E against our earlier estimates. This > leads to change in PAT by 149% and 58% and EPS of Rs 1.2 and Rs 1.8 > during the same period. > Investment Positives: > 1 Looking for retail tie up with Reliance retail meaning addition of > 500+ new outlets in next one year. > 2 The company’s renewed focus on the mid and high end segment of > watches will help it to increase the average realization to increase > the sales and expand the margins. > 3 The new facility at Baddi, Himachal Pradesh with 2 mn units per > annum will help the company to lower costs and make up for the demand > which will be created by increasing the outlets and distribution > channels as well as the growing sales volumes. > 4 The inclusion of international brands for marketing, like - Nautica, > Timberland and Versace in the already existing portfolio of FCUK and > Opex will further increase the revenues and bottom line and shows the > aggressive retail strategy adopted by the TWL which includes opening > of another 100 retail stores by 2008. > 5 Growing lifestyles coupled with higher disposable income, favourable > demography and increasing retail and mall culture will be the key > driver of growth in the sales. > 6 We revise the sales and expect it to grow at 41% CAGR to Rs224 cr > over the next two years and PAT to grow at 167% to Rs18 cr during the > same period. > > Valuation & Recommendation: > At CMP of Rs 33.6, the stock trades at a P/E of 28x FY2008E CEPS and > 19x FY2009E CEPS. We reiterate BUY with a long term view. > > > > >
