Research_Wings

LONG TERM BUY - VADILAL INDUSTRIES

Long
NSE:VADILALIND   VADILAL INDUSTRIES
*Company Name : VADILAL INDUSTRIES LTD*
Industry : Packaged Foods
NSE CODE : VADILALIND
BSE CODE : 519156
Horizons Years : 5Yrs
Date : 14 December 2019
*CMP: 727.05*
*Estimated Prices for Next 3 Years*
Mar-20 E : 966.75
Mar-21 E : 1167.35
Mar-22 E : 1374.7

*Fair Value basis of Discounted Cash Flow Method*
Based on data extracted from quarterly results upto Sep 19 is INR 791

*Conclusion:*
VADILAL INDUSTRIES LTD is trading at INR 727.05. The fair value of the share based on discounted cash flow is INR 791. Estimated Price based on earnings estimates of Mar,20 is INR 966.75.
If your return expectation is 10% in next 6 to 12 months of this analysis dated 14 Dec, 2019, buy and hold Vadilal Industries Ltd

*Investment/Disinvestment Rationale*
Vadilal Industries is engaged in the business of manufacturing Ice-cream, Flavored Milk, Frozen Dessert, Other Dairy Products and processing & exporting Processed Food Products such as Frozen Fruits, Vegetable, Pulp, Ready-to-eat and Ready-toserve products etc.

*Key Financial Highlights*
Below are some of the Financial Ratios for VADILAL INDUSTRIES LTD for financial year ending on 31 Mar 2019:
Return on Equity is 16%
Return on Assets is 07%
Market Capitalisation is INR 437 crores
Enterprise Value is INR 584 crores
Net Profit is INR 33 crores
Firm Profits is INR 32 crores
Sales is INR 567 crores
Add: Other Income is INR 11 crores
Total Income is INR 578 crores
Firm Margin is 06%
*Enterprise Value to Total Income is 1.01 (below 2 is better)*
*Enterprise Value to Total Income to Firm Margin is 18.38 (below 15 is investments friendly)*
*Price to Earning is 13.10 (below 18 is investments friendly)*
*Price to Book Value is 2.11 (below 2 is investments friendly)*
*Debt to Equity is 0.71 (below 2 is investments friendly)*

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