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http://content.icicidirect.com/mailimages/ICICIdirect_SanghviMovers_Q3FY12.pdf
T o p l i n e b e a t s e s t i m a t e s …
Sanghvi Movers (SML) reported its Q3FY12 results with net sales at
| 114.1 crore, EBITDA at | 80.1 crore and PAT at | 24.6 crore. The topline
was above our estimates while the bottomline was below our
expectations, mainly on account of higher interest cost of | 19.1 crore
(our estimate | 11 crore). During the quarter, the company incurred a
capex of | 49 crore on five cranes. The company has given a capex
guidance of ~ | 250 crore in FY12 and ~ | 25 crore for FY13. The
company is planning to reduce its debt to ~ | 500 crore by FY13. The
management expects the bottomline to grow by 5-10%, where the
growth would be supported by a reduction in interest costs. We
recommend a BUY rating on the stock with a target price of | 123, 5.0x
FY13E EPS.
ƒ Blended yield, capacity utilisation increase sequentially
The blended yield for Q3FY12 was 2.87% per month, (2.83% per
month in Q2FY12), mainly on account of higher proportion of new
cranes (~ 64% of gross block). The average utilisation for Q3FY12
increased to 86% (85% in Q2FY12).
ƒ Windmill sector contributes ~40% of total revenue in 9MFY12
In terms of sector wise break-up of revenues for 9MFY12, the wind
mill sector contributed 40%, power contributed 30%, refinery and
gas contributed 17%, steel and metal contributed 5%, cement
contributed 4% and other industries contributed 4%.
V a l u a t i o n
Going ahead, the company plans to adopt a conservative approach by
bringing down the outstanding debt and reducing its capital expenditure.
At the current price of | 104, the stock is trading at 4.2x its FY13E EPS of
| 24.6. We recommend a BUY rating on the stock with a target price of
| 123, 5.0x FY13E EPS
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
http://content.icicidirect.com/mailimages/ICICIdirect_SanghviMovers_Q3FY12.pdf
T o p l i n e b e a t s e s t i m a t e s …
Sanghvi Movers (SML) reported its Q3FY12 results with net sales at
| 114.1 crore, EBITDA at | 80.1 crore and PAT at | 24.6 crore. The topline
was above our estimates while the bottomline was below our
expectations, mainly on account of higher interest cost of | 19.1 crore
(our estimate | 11 crore). During the quarter, the company incurred a
capex of | 49 crore on five cranes. The company has given a capex
guidance of ~ | 250 crore in FY12 and ~ | 25 crore for FY13. The
company is planning to reduce its debt to ~ | 500 crore by FY13. The
management expects the bottomline to grow by 5-10%, where the
growth would be supported by a reduction in interest costs. We
recommend a BUY rating on the stock with a target price of | 123, 5.0x
FY13E EPS.
ƒ Blended yield, capacity utilisation increase sequentially
The blended yield for Q3FY12 was 2.87% per month, (2.83% per
month in Q2FY12), mainly on account of higher proportion of new
cranes (~ 64% of gross block). The average utilisation for Q3FY12
increased to 86% (85% in Q2FY12).
ƒ Windmill sector contributes ~40% of total revenue in 9MFY12
In terms of sector wise break-up of revenues for 9MFY12, the wind
mill sector contributed 40%, power contributed 30%, refinery and
gas contributed 17%, steel and metal contributed 5%, cement
contributed 4% and other industries contributed 4%.
V a l u a t i o n
Going ahead, the company plans to adopt a conservative approach by
bringing down the outstanding debt and reducing its capital expenditure.
At the current price of | 104, the stock is trading at 4.2x its FY13E EPS of
| 24.6. We recommend a BUY rating on the stock with a target price of
| 123, 5.0x FY13E EPS
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