Indo Count Industries Ltd. share price target

ICIL is the 2nd largest exporter of Home Textiles (bed linen, bed sheets and quilts). Company is benefiting from expanding into new profitable territories with better mix of valued added products.

Indo Count Industries Limited - ICIL intent is to increase the share of high-value fashion, institutional and utility bedding from 10% to 30% in the next few years. Currently, China holds 85-90% market share in these segments, which provides a huge opportunity for market share gains.They expect ICNT to post 19% revenue CAGR and 31% PAT CAGR over FY16-18. Focus on brands and increase in the revenue share of higher value products should entail higher realizations and margins. They expect 160bp margin expansion over FY16-18 to 23%. Motilal Oswal decreased Buy price target of Indo Count Industries Limited to 1380.0 (12x FY18E EPS).

Trendlyne has 3 reports on ICIL updated in the last year from 2 brokers with an average target of Rs 1205. Brokers have a rating for ICIL with 1 downgrade in past 6 months.

Indo Count is one of the leaders in vertically integrated bedding in India. They have created greater efficiencies, hence provided more value for their clients by controlling all aspects of the supply chain, from spinning, to products and sales. Company has a vision to be one of the leading players in global Home Textile industry on the strengths of technology, experience and innovation. Company has a mission to be committed to provide all their customers desired quality, services and value for money through our technological and organizational strengths. Chart Hypothesis: Below is the 1 year weekly price chart of...

4QFY16 results in line: Indo Count Industries' (ICNT) revenue grew by 15% YoY to INR5.25b (vs. our estimate of INR5.5b) in 4QFY16, on the back of a 15% volume growth. EBITDA grew by 34% YoY to INR1.2b (vs. our est. of INR1.1b)....

Tapping new categories and expanding geographical reach: After establishing a strong foothold in the cotton bed sheets segment Indo Count is looking to tap into the larger bed sheet categories Fashion Bedding, Utility Bedding and Institutional Bedding. These categories are high margin business and would expand the target market for Indo Count from $4.5 bn to $14 bn. These categories currently account for 5% of the Home Textile segment's revenues and the management targets to increase it to 25% by FY18E. Most of the home textile designs and printing are developed in-house and are patent protected. These product differentiations, innovations, patents and experience will aid to gain market share. ICIL is also...

The revenue share of Bed-Linen is increased from Rs.10290mn to Rs.13820mn,a growth of 39% in FY15. The growth in revenue is mainly attributed to HomeTextile segment on the back of higher realization and better product mix. Indo Count recorded EBITDA with an increase of 19% from Rs.2488mn to Rs.3063mn from FY14 to FY15.