Investment Rationale
The brokerage cuts FY22-23 earnings estimates by ~2%; modelling revenue / EBITDA / PAT CAGR of 16 / 12 / 8 (%) over FY21-23E. It maintains ADD with a DCF-based target price of Rs450. At target price, the stock will trade at 31x P/E multiple March’23E. Key downside risks are delays or failures distribution expansion or steep rise in competitive intensity and raw material prices.
Promoter/FII Holdings
Promoters held 51.1 per cent stake in the company as of March 31, 2021, while FIIs held 2.9 per cent, DIIs 6 per cent and public and other 40 per cent.
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