This Textile Stock To Buy For 38% Return, 1 Year: ICICI Direct Recommends

Renowned brokerage firm ICICI Direct has recommended investors to buy stocks of Indo Count with a potential upside of 38%, within a target period of 1 year.

Target Price

The Current Market Price (CMP) of Indo Count (INDCOU) is Rs. 260. The brokerage firm, ICICI Direct has estimated a Target Price for the stock at Rs. 360. Hence the stock is expected to give a 38% return, in a Target Period of 1 year.

Stock Outlook
Current Market Price (CMP)	Rs. 260
Target Price	Rs. 360
1 Year returns	38.00%

Company performance

Indo Count (ICIL)'s net sales stood at Rs. 2519.2 crore, in FY 21, and the brokerage firm is expecting it is to grow Rs. 3,093.4 crore, in FY 22, and Rs. 4,191.8 crore in FY 23. in FY 21, the company growth was 21.1%, which is expected to surge to 22.8% in FY 22 and to 35.5% in FY 23. The company's EBITDA stood at Rs. 376.7 crore, in FY 21, and the brokerage firm is expecting it to grow Rs. 467.1 crore, in FY 22, and Rs. 649.7 crore in FY 23.

Comments by ICICI Direct

According to ICICI Direct, "With the recent acquisition (of GHCL), we believe ICIL is well placed to capitalize on the robust opportunities in the home textile export space which is fuelled by 'China+1 strategy' and recent talks on potential FTA agreement with Europe. Factoring in the acquisition, we model in earnings CAGR of 29% in FY21-23E with a healthy RoCE of ~23% in FY23E. Maintain BUY with a revised target price of Rs. 360 (previous TP: Rs. 350)."

About the company

Indo Count is one of India's largest home textile manufacturers and exporters with an extensive product range that spans across bedsheets, quilts, and bed linen. It has a presence in the top 9 out of 10 top big-box retailers in the USA.

Disclaimer

The above stock was picked from the brokerage report of ICICI Direct. 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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