Piramal Glass Growth Drivers Intact, Maintain BUY :: EMkay

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Piramal Glass

Growth Drivers Intact, Maintain BUY

BUY

CMP: Rs 130                                       Target Price: Rs 220

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n     Piramal Glass (PGL) Q4FY11 beat expectations driven by stronger traction & product mix – revenue growth at 15.2% yoy to Rs 3.3bn and APAT growth at 185.7% to Rs 327.1mn.

n     Green shoots in FY11 performance with rise in C&P share and EBIDTA margins at 22.8% - Also, hinting at further traction in ensuing years

n     Capacity expansion undertaken - cash flows utilized for capex and balance sheet de-leveraging may trickle after FY13E

n     Introduce FY13E earnings of Rs23.3/Share – Roll EV/Ebidta to FY13E - Retain Buy rating with revised target price of Rs220/Share