Sharekhan Recommends This Stock To Buy For A 27% Upside

A renowned Brokerage firm, Sharekhan has picked Renaissance Global's stock to 'Buy' with a potential upside of 27%, in 1 year.

Target Price

The Current Market Price (CMP) of Renaissance Global is Rs. 948. The brokerage firm has estimated a Target Price for the stock at Rs. 1204. Hence the stock is expected to give a 27% return, in a Target Period of 1 year.

Stock Outlook
Current Market Price (CMP)	Rs. 948
Target Price	Rs. 1204
1 year return	27.00%

Company performance

In the Q2FY2022, Renaissance Global Ltd's reports revenue of Rs. 477.1 crore, which dropped by 9% compared to Q2FY21. D2C business (key business and margin driver) revenues increased by 128% YoY to Rs. 20.4 crore, while EBIDTA margins are at 20.1%. The company's operating profit has increased by 51% to Rs. 53 crore. Lower other income and a decline in revenues led to just a 21% growth in PAT to Rs. 27.9 crore as against our expectation of Rs. 30.3 crore.

Comments by Sharekhan

Sharekhan has recommended investors to retain a positive stance with an upside of 27% for this stock: According to the firm, "Renaissance Global seeks to grab a large share in the high-margin global branded jewellery space, which provides sustained strong earning visibility and higher cash generation ability in long run. Since our initiation of the viewpoint idea, the stock has given strong returns of ~30% in last two months. RGL's focus on scaling up its branded business in key export markets and strengthening of balance sheet gives us comfort for the stock."

About the company

Renaissance Global (RGL) is a global jewellery company focused on the distribution and manufacturing of customer brands and supplier of licensed branded jewellery. RGL has relationships with marquee global retailers like Amazon, Argos, Helzberg, Malabar Gold, Signet, Wal-Mart, Zales Corp., etc. RGL has diversified operations across key markets in USA, UK & Middle East

Disclaimer

The above stock has been picked from the brokerage report of Sharekhan. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution. Greynium Information Technologies, the author, and the brokerage house are not liable for any losses caused as a result of decisions based on the article.

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