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S t e l l a r p e r f o r m a n c e …
Praj Industries put up a stellar performance in Q2FY12 with net sales
increasing by 111.6% YoY from | 108.2 crore in Q2FY11 to | 228.9 crore
in Q2FY12. Though raw material costs were higher during the quarter,
64% of net sales compared to 58.8% in Q2FY11, a considerable
rationalisation in employee cost, from 17.3% in Q2FY11 to 10.7% in
Q2FY12, helped the company to improve its margins. Margins for the
quarter stood at 8.4% against 7.9% in Q2FY11. Consequent to the higher
sales and margins, Praj’s earnings jumped by 130.7% during the quarter
to | 20.5 crore from | 8.9 crore in the corresponding quarter last year.
ƒ Highlights of the quarter
Praj received orders worth | 270 crore (~52% international orders, ~48%
domestic orders) during Q2FY12 with the total order book at the end of
the quarter at | 900 crore ((~55% international, ~45% domestic).
The company inaugurated its two new facilities at Kandla and Jejuri (near
Pune) during the quarter. The Kandla plant manufactures high thickness
pressure vessels and static equipment while the Jejuri plant produces a
range of bio-tech products used in the production of ethanol, beer and
sugar. The company has also formed a wholly owned subsidiary, Praj
South Africa PTY Ltd. and Praj Tanzania in Africa to execute its operations
in Africa.
V a l u a t i o n
At the CMP, the stock is trading at 21.8x and 15x its FY12E and FY13E
EPS of | 3.5 and | 5.1, respectively. With the increasing order inflows
especially from international operations and improvement in orders from
the non-ethanol business, we expect the revenues of the company to
grow at a higher rate. Further, margins are also expected to sustain at
current levels led by the higher international orders composition. We
have valued the stock at 14x its FY13E EPS of | 5.1 and added the cash
value of | 25/share to arrive at the target price of | 96.
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
S t e l l a r p e r f o r m a n c e …
Praj Industries put up a stellar performance in Q2FY12 with net sales
increasing by 111.6% YoY from | 108.2 crore in Q2FY11 to | 228.9 crore
in Q2FY12. Though raw material costs were higher during the quarter,
64% of net sales compared to 58.8% in Q2FY11, a considerable
rationalisation in employee cost, from 17.3% in Q2FY11 to 10.7% in
Q2FY12, helped the company to improve its margins. Margins for the
quarter stood at 8.4% against 7.9% in Q2FY11. Consequent to the higher
sales and margins, Praj’s earnings jumped by 130.7% during the quarter
to | 20.5 crore from | 8.9 crore in the corresponding quarter last year.
ƒ Highlights of the quarter
Praj received orders worth | 270 crore (~52% international orders, ~48%
domestic orders) during Q2FY12 with the total order book at the end of
the quarter at | 900 crore ((~55% international, ~45% domestic).
The company inaugurated its two new facilities at Kandla and Jejuri (near
Pune) during the quarter. The Kandla plant manufactures high thickness
pressure vessels and static equipment while the Jejuri plant produces a
range of bio-tech products used in the production of ethanol, beer and
sugar. The company has also formed a wholly owned subsidiary, Praj
South Africa PTY Ltd. and Praj Tanzania in Africa to execute its operations
in Africa.
V a l u a t i o n
At the CMP, the stock is trading at 21.8x and 15x its FY12E and FY13E
EPS of | 3.5 and | 5.1, respectively. With the increasing order inflows
especially from international operations and improvement in orders from
the non-ethanol business, we expect the revenues of the company to
grow at a higher rate. Further, margins are also expected to sustain at
current levels led by the higher international orders composition. We
have valued the stock at 14x its FY13E EPS of | 5.1 and added the cash
value of | 25/share to arrive at the target price of | 96.
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