Please Share:: 
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
C a t s a t h o m e , l i o n s a w a y …
OnMobile Global reported its consolidated numbers that were better than
our estimates on the topline front. The company reported a topline of |
155.2 crore vs. our expectation of | 140.1 crore, growing 13.8% QoQ and
18.0% YoY. EBITDA for the quarter stood at | 32.5 crore vs. our
expectation of | 26.8 crore growing 20.4% QoQ and 16.5% YoY. EBITDA
margin for the quarter stood at 20.9%, improving by 115 bps YoY. PAT
stood at | 47.4 crore against our expectation of | 11.4 crore due to higher
other income of | 51.1 crore, which included | 46.6 crore earned by
selling a significant amount of stake sale in Ver Se Innovation Pvt Ltd.
Highlights of the quarter
OnMobile Global’s revenue stood at | 155.2 crore as against our
expectation of | 140.1 crore. The growth in revenues came from
international operations in both the core and investment business mainly
contributed by Latin American and African operations. EBITDA margins
improved 115 bps QoQ but declined by 26 bps YoY due to an increase in
content cost and employee cost. The employee cost went up as a result
of salary revisions effective Q2FY12 onwards. The bottomline, however,
benefited by | 46.6 crore earned form a stake sale of ~10% of Ver Se
Innovation Pvt Ltd. The company continues to hold ~ 5% of the Ver Se
which it intends to sell in the near future.
V a l u a t i o n
The company reported a topline that was slightly better than our
expectations due to higher-than-expected growth in international
revenues. The domestic business, however, de-grew, which remains a
concern. At the CMP of | 66, the stock is trading at 9.5x FY12E EPS of |
6.9 and 10.9x FY13E EPS of | 6.0. Using the DCF methodology, assuming
a revenue CAGR of 11.4% over FY11 to FY20 and 3.0% thereon, we have
arrived at the target price of | 70 implying an upside of 7%. Our target
price discounts the FY13E EPS by 11.7x. We maintain our target price but
due to recent run up in the stock, we downgrade it from BUY to HOLD.
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
C a t s a t h o m e , l i o n s a w a y …
OnMobile Global reported its consolidated numbers that were better than
our estimates on the topline front. The company reported a topline of |
155.2 crore vs. our expectation of | 140.1 crore, growing 13.8% QoQ and
18.0% YoY. EBITDA for the quarter stood at | 32.5 crore vs. our
expectation of | 26.8 crore growing 20.4% QoQ and 16.5% YoY. EBITDA
margin for the quarter stood at 20.9%, improving by 115 bps YoY. PAT
stood at | 47.4 crore against our expectation of | 11.4 crore due to higher
other income of | 51.1 crore, which included | 46.6 crore earned by
selling a significant amount of stake sale in Ver Se Innovation Pvt Ltd.
Highlights of the quarter
OnMobile Global’s revenue stood at | 155.2 crore as against our
expectation of | 140.1 crore. The growth in revenues came from
international operations in both the core and investment business mainly
contributed by Latin American and African operations. EBITDA margins
improved 115 bps QoQ but declined by 26 bps YoY due to an increase in
content cost and employee cost. The employee cost went up as a result
of salary revisions effective Q2FY12 onwards. The bottomline, however,
benefited by | 46.6 crore earned form a stake sale of ~10% of Ver Se
Innovation Pvt Ltd. The company continues to hold ~ 5% of the Ver Se
which it intends to sell in the near future.
V a l u a t i o n
The company reported a topline that was slightly better than our
expectations due to higher-than-expected growth in international
revenues. The domestic business, however, de-grew, which remains a
concern. At the CMP of | 66, the stock is trading at 9.5x FY12E EPS of |
6.9 and 10.9x FY13E EPS of | 6.0. Using the DCF methodology, assuming
a revenue CAGR of 11.4% over FY11 to FY20 and 3.0% thereon, we have
arrived at the target price of | 70 implying an upside of 7%. Our target
price discounts the FY13E EPS by 11.7x. We maintain our target price but
due to recent run up in the stock, we downgrade it from BUY to HOLD.
No comments:
Post a Comment