Interloop Limited (ILP): Headwinds partially offset by tailwinds, Buy intact – By JS Research
- Interloop Limited (ILP)
- Despite a new tax regime hurting near-term profits, Interloop Limited (ILP) maintains an aggressive expansion plan. This, combined with a lower cost of capital, reiterates our Buy rating, albeit with a revised TP of Rs90 (down 10%).
- The new tax regime announced in FY25 Budget for exporters raises ILP’s effective tax rate from ~7% to 39%, trimming earnings by ~30%. ILP, however, plans a significant capacity increase in both hosiery and denim segments, along with a shift to more renewable energy, which eventually limits our downward revision in earnings to ~20%.
