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Pratibha Industries
Strong orderbook, margin improvement
Pratibha’s revenue, EBITDA & profit grew 23%, 27% & 29% yoy
respectively. Although EBITDA was in line, net profit was below
our estimates on account of higher interest and financial charges.
Pratibha has a strong orderbook and better-than-industry OPM and
RoE. Our FY11/FY12 estimates and target price are under review.
Order book at 3.3x TTM revenue. The `36bn order book is 3.3x
TTM revenue and has an average execution period of 2.5 years.
Pratibha is also L1 for projects worth `6bn. It received orders worth
`2.6bn in 3QFY11 and `11.6bn YTDFY11. It targets orderbook of
`45bn at end-FY11. Order inflow has been slow in Maharashtra
during 3Q due to change in state ministry portfolios. Revenue of the
construction division grew 24% yoy, while that of Pipes declined 37%
yoy. The company expects FY10-12 revenue CAGR of 25-30%.
Operating performance. Pratibha’s high-margin water and urban
infra segments led to a healthy 15.3% OPM (up 50bps yoy and 25bps
qoq). For FY11-12, the company targets OPM of 15% (our estimate:
14%). The EPC division’s PBIT margin was 15.3% (up 400bps yoy);
that of the pipes division was 6.8% (down 980bps yoy).
BOT projects. Pratibha has three BOT projects. Phase-1 of its
DMRC car-park project is likely to be commissioned in Sep ’11 and
the Bhopal-Sanchi road project will commence by Jan ’12. The
Baramati toll-way project has already begun operations.
Valuation. At current market price, the stock trades at PE of 4.5x
and EV/EBITDA of 3.6x on FY12 estimates.
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
Pratibha Industries
Strong orderbook, margin improvement
Pratibha’s revenue, EBITDA & profit grew 23%, 27% & 29% yoy
respectively. Although EBITDA was in line, net profit was below
our estimates on account of higher interest and financial charges.
Pratibha has a strong orderbook and better-than-industry OPM and
RoE. Our FY11/FY12 estimates and target price are under review.
Order book at 3.3x TTM revenue. The `36bn order book is 3.3x
TTM revenue and has an average execution period of 2.5 years.
Pratibha is also L1 for projects worth `6bn. It received orders worth
`2.6bn in 3QFY11 and `11.6bn YTDFY11. It targets orderbook of
`45bn at end-FY11. Order inflow has been slow in Maharashtra
during 3Q due to change in state ministry portfolios. Revenue of the
construction division grew 24% yoy, while that of Pipes declined 37%
yoy. The company expects FY10-12 revenue CAGR of 25-30%.
Operating performance. Pratibha’s high-margin water and urban
infra segments led to a healthy 15.3% OPM (up 50bps yoy and 25bps
qoq). For FY11-12, the company targets OPM of 15% (our estimate:
14%). The EPC division’s PBIT margin was 15.3% (up 400bps yoy);
that of the pipes division was 6.8% (down 980bps yoy).
BOT projects. Pratibha has three BOT projects. Phase-1 of its
DMRC car-park project is likely to be commissioned in Sep ’11 and
the Bhopal-Sanchi road project will commence by Jan ’12. The
Baramati toll-way project has already begun operations.
Valuation. At current market price, the stock trades at PE of 4.5x
and EV/EBITDA of 3.6x on FY12 estimates.
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