Everest Industries spikes 11%; Ventura initiates Buy, sees 36% jump in stock
Building products and solutions provider Everest Industries shares rallied 10.6 percent intraday Thursday after brokerage house Ventura has initiated coverage on the stock with buy rating.
It has set a target price for the stock at Rs 712, implying a potential upside of 35.56 percent over Wednesday’s closing price.
The research house said the government policies to promote housing sector is positive factor for the company.
Boards and panels segment will lead to better profitability while new product launches in roofing segment will maintain growth momentum, it added.
Ventura said the change in product mix will boost profitability of the company and will reduce dependence on roofing. Margin expansion and debt repayment to boost return ratios, it added.
It expects revenue, operating income and net profit of the company to grow at a compounded rate of 11 percent, 53 percent and 173 percent, respectively, by March 2020.
The research house said the company will also have benefits from low base of previous financial year, which was impacted by demonetisation and high material costs.
At 12:40 hours IST, the stock price was quoting at Rs 545.00, up Rs 19.80, or 3.77 percent on the BSE.