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V a l u a t i o n s s t r e t c h e d …
Nitin Fire’s (NFPIL) Q2FY12 results were in line with our estimates as net
sales witnessed a 6.7% de-growth on the back of the muted performance
of the domestic business. Net sales stood at | 145.2 crore as against |
155.5 crore in Q2FY11. EBITDA margins for the company improved YoY
from 13.5% to 15.7%. Employee cost as a percentage of sales improved
from ~5% to ~3% while rationalisation of other expenditure from 8.5%
to 7.5% also resulted in higher margins for the company. Net profit grew
24.3% to | 17.1 crore on the back of higher EBITDA led by lower cost.
ƒ Standalone performance review
On a standalone basis, sales stood at | 26.5 crore, de-growth of 45.6%.
The raw material cost has declined from | 41.1 crore to | 19.1 crore.
Employee cost has gone up from | 0.92 crore to | 1.53 crore while other
expenditure increased from | 1.5 crore to | 2.5 crore. Net profit declined
from | 4.3 crore to | 2.2 crore. Despite higher EBITDA, NFPIL has posted a
dip in net profit due to lower other income and increase in tax liability.
ƒ Sales break-up
During the quarter, NFPIL’s domestic sales witnessed de-growth of 19.0%
to | 27.1 crore from | 33.4 crore in Q2FY11. Consequently, the
international business also witnessed a 3.3% de-growth to | 118.1 crore
compared to | 122.1 crore in the corresponding quarter.
V a l u a t i o n
At the CMP, the stock is trading at 15.4x and 14.5x its FY12E and FY13E
EPS of | 2.4 and | 2.6, respectively. Though the company has posted two
consecutive quarters of strong results on the back of strong results from
the fire fighting business, we believe the stock is expensively valued after
the run up in the last six months. We recommend investors book profit in
the stock and exit at current levels. We are terminating coverage on the
stock due to lack of operational information.
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
V a l u a t i o n s s t r e t c h e d …
Nitin Fire’s (NFPIL) Q2FY12 results were in line with our estimates as net
sales witnessed a 6.7% de-growth on the back of the muted performance
of the domestic business. Net sales stood at | 145.2 crore as against |
155.5 crore in Q2FY11. EBITDA margins for the company improved YoY
from 13.5% to 15.7%. Employee cost as a percentage of sales improved
from ~5% to ~3% while rationalisation of other expenditure from 8.5%
to 7.5% also resulted in higher margins for the company. Net profit grew
24.3% to | 17.1 crore on the back of higher EBITDA led by lower cost.
ƒ Standalone performance review
On a standalone basis, sales stood at | 26.5 crore, de-growth of 45.6%.
The raw material cost has declined from | 41.1 crore to | 19.1 crore.
Employee cost has gone up from | 0.92 crore to | 1.53 crore while other
expenditure increased from | 1.5 crore to | 2.5 crore. Net profit declined
from | 4.3 crore to | 2.2 crore. Despite higher EBITDA, NFPIL has posted a
dip in net profit due to lower other income and increase in tax liability.
ƒ Sales break-up
During the quarter, NFPIL’s domestic sales witnessed de-growth of 19.0%
to | 27.1 crore from | 33.4 crore in Q2FY11. Consequently, the
international business also witnessed a 3.3% de-growth to | 118.1 crore
compared to | 122.1 crore in the corresponding quarter.
V a l u a t i o n
At the CMP, the stock is trading at 15.4x and 14.5x its FY12E and FY13E
EPS of | 2.4 and | 2.6, respectively. Though the company has posted two
consecutive quarters of strong results on the back of strong results from
the fire fighting business, we believe the stock is expensively valued after
the run up in the last six months. We recommend investors book profit in
the stock and exit at current levels. We are terminating coverage on the
stock due to lack of operational information.
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