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R e s u l t s i n l i n e … a w a i t i n g o r d e r s
Shiv-Vani Oil declared its Q1FY12 results that were in line with our
estimates. Revenues increased 2.4% to | 408.6 crore while net profits
increased 5.9% YoY to | 68.3 crore. The EBITDA margin increased 220
bps YoY to 46.2% in Q1FY12, also in line with estimates. However, lack of
order intake over the past few quarters led to a decline in the order book
to | 2,650 crore executable over the next two years. Seismic, drilling and
CBM contributes | 225 crore, | 1,900 crore and | 400 crore, respectively
to Shiv-Vani’s order book. We have maintained our FY12E and FY13E EPS
estimates of | 46.6 and | 49.1, respectively. High debt levels, lack of order
intake and promoter pledging of shares (76.6% of promoter holding) has
put pressure on the stock price over the past few quarters. The company
has bid for orders worth | 2,900 crore, which are expected to be
announced in H2FY12. Repayment of debt and release of pledged
promoters’ shares, going forward, would provide upside to the stock. We
maintain our BUY rating on Shiv-Vani Oil with a price target of | 319.
ƒ Highlights of the quarter
Stable execution of order book and complete fleet utilisation in the
current quarter led to a 2.4% YoY increase in revenues from | 399.1
crore in Q1FY11 to | 408.6 crore in Q1FY12. The EBITDA margins
increased 220 bps YoY to 46.2% in Q1FY12. The company expects
EBITDA margins to stabilise at 47%, going forward (our estimates:
46.3% in FY13E). Shiv-Vani reported a 5.9% increase in net profit
YoY from | 62.2 crore in Q1FY11 to | 68.3 crore in Q1FY12.
V a l u a t i o n
Shiv Vani’s order book has declined to | 2,650 crore (executable over the
next two years) due to lack of order intake over the past few quarters.
This has reduced Shiv-Vani’s revenues visibility, going forward. However,
winning new orders from ONGC may lead to a re-rating for the stock.
Shiv-Vani is currently trading at 3.5x FY13E EPS of | 49.1 and at an
EV/EBITDA multiple of 3.7x FY13E. We have valued Shiv-Vani at 5x FY13E
EV/EBITDA, with a price target | 319
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
R e s u l t s i n l i n e … a w a i t i n g o r d e r s
Shiv-Vani Oil declared its Q1FY12 results that were in line with our
estimates. Revenues increased 2.4% to | 408.6 crore while net profits
increased 5.9% YoY to | 68.3 crore. The EBITDA margin increased 220
bps YoY to 46.2% in Q1FY12, also in line with estimates. However, lack of
order intake over the past few quarters led to a decline in the order book
to | 2,650 crore executable over the next two years. Seismic, drilling and
CBM contributes | 225 crore, | 1,900 crore and | 400 crore, respectively
to Shiv-Vani’s order book. We have maintained our FY12E and FY13E EPS
estimates of | 46.6 and | 49.1, respectively. High debt levels, lack of order
intake and promoter pledging of shares (76.6% of promoter holding) has
put pressure on the stock price over the past few quarters. The company
has bid for orders worth | 2,900 crore, which are expected to be
announced in H2FY12. Repayment of debt and release of pledged
promoters’ shares, going forward, would provide upside to the stock. We
maintain our BUY rating on Shiv-Vani Oil with a price target of | 319.
ƒ Highlights of the quarter
Stable execution of order book and complete fleet utilisation in the
current quarter led to a 2.4% YoY increase in revenues from | 399.1
crore in Q1FY11 to | 408.6 crore in Q1FY12. The EBITDA margins
increased 220 bps YoY to 46.2% in Q1FY12. The company expects
EBITDA margins to stabilise at 47%, going forward (our estimates:
46.3% in FY13E). Shiv-Vani reported a 5.9% increase in net profit
YoY from | 62.2 crore in Q1FY11 to | 68.3 crore in Q1FY12.
V a l u a t i o n
Shiv Vani’s order book has declined to | 2,650 crore (executable over the
next two years) due to lack of order intake over the past few quarters.
This has reduced Shiv-Vani’s revenues visibility, going forward. However,
winning new orders from ONGC may lead to a re-rating for the stock.
Shiv-Vani is currently trading at 3.5x FY13E EPS of | 49.1 and at an
EV/EBITDA multiple of 3.7x FY13E. We have valued Shiv-Vani at 5x FY13E
EV/EBITDA, with a price target | 319
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