Anmol India Shares Gains 163% From 52W-Low In 11 Months: More Steam Left?

Anmol India is a small-cap energy firm with a market capitalization of Rs 363 Cr. Anmol India Ltd., a well-known brand in the coal import, trading, and supply industries, was founded in 1998. At the present market price of Rs 63.70 a share, the scrip has secured a solid gain of 163% in 11 months from the 52-week low of Rs 24.23 on (09/01/2023). The scrip set a new 52-week high of Rs 65.95 on Monday, December 11. The brokerage firm Profitmart sees more rally in the stock and fixes a target price of Rs 87 which implies a potential upside of 36.57% from the current market price.

Anmol India Financials

"Anmol has delivered strong numbers in H1 of FY24 as normally the H2 of every year is always a much stronger business period for the company. The only drag in performance has been a flatish topline in H1 FY24 but operational performance in terms of operating profits is good with operating EBIDTA up by 41% YoY with PAT at Rs 12.53 crs in H1 of FY24 as compared to Rs 10.09 crs in H1 last year - up by 24% YoY. However interest cost was up by 127% Yoy to Rs 8.84 crs vs Rs 3.89 crs in H1 last year largely due to high working capital requirements," said the brokerage in a note.

"Going ahead we expect a significantly strong H2FY24 going ahead. The Anmol management is also confident and positive on demand prospects for its business in the medium term as robust industrial growth and rise in power consumption will drive demand for coal in India & where consumption is expected to grow at consistent rate of 8-10% every year as the runway for growth is huge ahead over the next 5 to 10 years ahead," Profitmart stated.

Anmol India Expansion Plans

"Anmol plans to add new commodities to its product portfolio which are expected to generate incremental growth in the medium to long term future. Anmol plans to expand its operations in Gujarat by entering new ports in the state. Having already initiated efforts in the direction, the company intends to explore further opportunities at ports in the eastern and southeastern coasts over the next 4 years," added the brokerage note.

Anmol India Share Price Target

"On a rough cut basis, in FY24E, Topline is expected to touch Rs 1551 crs, followed by Rs 1783 crs in FY25E & Rs 2051 crs in FY26 On the bottomline level we expect the company to record a PAT of Rs 25 crs in FY24E which is expected to bounce back to Rs 31 crs in FY25 & Rs 40 crs in FY26 Thus on a conservative basis, Anmol should record a EPS of Rs 4.39 for FY24E which is expected at Rs 5.44 for FY25E & Rs 7.02 for FY26E," said the brokerage firm Profitmart.

"Looking at Anmol's steady financial track record, strong product portfolio and strong product offerings and strong promoters we expect the stock to get re rated in future. We continue to be positive based on the company's future growth outlook in the coal trading segment & believe that Anmol looks attractive from a long term perspective Current PE on FY25E earnings is around 11x which we believe can easily trade at 14x going ahead considering that this business enjoys good visibility & company is a large player in this segment & presents a strong growth opportunity going ahead Hence we believe that the Anmol India Ltd should be purchased at the current price for a price target of around Rs 87 over the next 18 months," stated the equity research analysts of Profitmart.

Disclaimer

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