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Sintex
For 3QFY2011, Sintex reported 39.9% yoy growth in consolidated net sales to `1,186cr in
line with our expectation. This strong growth in revenues was primarily led by its monolithic
segment (up 171% yoy), international subsidiaries (up 20% yoy), Bright Autoplast (up 49%
yoy) and the textile segment (up 29% yoy). The domestic custom moulding segment reported
subdued set of numbers for the quarter. On standalone basis, revenues were impacted by
the BT Shelter segment and Zeppelin. Consolidated, operating profit stood at `197cr, up
55% yoy. OPM stood at 16.6%, up by 162bp yoy (down by 200bp qoq) owing to higher
contribution from the high-margin monolithic segment. Other income fell 45.0% yoy to
`14cr. Consequently, PAT came in at `112.8cr, up 55.7% yoy, which significantly exceeded
our expectation.
The recent acquisition of Durha Construction has strengthened the company’s geographical
footprint and diversified its product portfolio in the monolithic segment. Management
reiterated its strong outlook for the domestic plastic segment and clarified that future
investment of ~`100-140cr by FY2013 in the power segment is purely for captive
consumption and will improve its margins over the longer term. We have revised upwards
our earnings estimates for FY2011 and FY2012 by 8.0% and 8.6%, respectively. At the CMP,
the stock is trading at 8.1x FY2012E EPS, which is below to its historical one-year average
forward P/E (13x). We maintain a Buy on the stock, with a Target Price of `229.
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