Hold IFB Industries; target of Rs 790: Centrum

November 17
00:42 2017

Centrum’s research report on IFB Industries

We maintain our Hold rating on IFB Industries with a revised TP of Rs790 (28x FY19E EPS). We believe that positives of the current quarter are captured in the stock price post the steep 25% rally in last one month. We increase our target multiple factoring re-rating in the consumer durable sector post the healthy revenue growth across players. Increasing distribution reach strategy of the management to drive volume growth has started to bear fruit with strong growth across categories. New product launches coupled with mix change and domestic manufacturing would drive margins in medium term. Re-entry into refrigerator category from Q1FY19 would further help to drive revenues.

We maintain our Hold rating on the stock with a revised TP of Rs790 (28x FY19E EPS). We have increased our multiple given the visibility on healthy margins, strong revenue growth and re-rating in the sector. We continue to value it at 30% discount to Whirlpool.

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