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S t r o n g r e s u l t s , f a i r l y v a l u e d …
Nitin Fire reported its Q4FY11 results. The company’s standalone sales for
the quarter witnessed robust growth of ~67% to | 52.5 crore against |
31.4 crore in Q4FY10. Margins also increased ~240 bps to 16.8% against
14.3% in the corresponding quarter last year. The major contributors to
the company’s higher margins were lower employee costs and lower
other expenditure. Employee costs to sales were lower by 140 bps to
2.5% while the other expenditure declined by 530 bps to 7.8%. However,
higher commodity prices increased the raw material cost to sales ratio to
~73% in Q4FY11 from ~69% in Q3FY10. Despite higher EBITDA margin,
PAT margins witnessed a marginal decline and stood at 11.7% in Q4FY11
against 11.9% in Q4FY10. This was mainly on account of higher tax of |
2.3 crore paid during the quarter against a tax write-back of | 0.7 crore in
the corresponding quarter last year.
ƒ Consolidated results
Nitin Fire’s consolidated Q4FY11 results are not comparable with the
corresponding period last year due to an associate company becoming a
step down subsidiary (from April 1, 2010). Prior to this, it was an associate
while a wholly-owned subsidiary became an associate (from December
29, 2010).
The company’s consolidated Q4FY11 and FY11 sales stood at | 83.6 crore
and | 437.8 crore, respectively. The margins for the quarter stood at
22.5% and for the year at 15.3%. The PAT for the quarter ended was |
10.6 crore and for the year was | 53.4 crore. For 2011, the company
reported other income of | 12.9 crore (profit from sale of business).
Hence, the adjusted PAT for FY11 stood at | 40.5 crore.
V a l u a t i o n
At the CMP, the stock is trading at 13.3x and 12.7x its FY12E and FY13E
EPS of | 7.2 and | 7.6, respectively. The stock has run up significantly in
the past two or three months from | 60 (February, 2011) to | 100 (May,
2011). Hence, we believe it is fairly priced. We value the stock at 12x its
FY13E EPS of | 7.6, assigning it a HOLD rating with a TP of | 91.
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
S t r o n g r e s u l t s , f a i r l y v a l u e d …
Nitin Fire reported its Q4FY11 results. The company’s standalone sales for
the quarter witnessed robust growth of ~67% to | 52.5 crore against |
31.4 crore in Q4FY10. Margins also increased ~240 bps to 16.8% against
14.3% in the corresponding quarter last year. The major contributors to
the company’s higher margins were lower employee costs and lower
other expenditure. Employee costs to sales were lower by 140 bps to
2.5% while the other expenditure declined by 530 bps to 7.8%. However,
higher commodity prices increased the raw material cost to sales ratio to
~73% in Q4FY11 from ~69% in Q3FY10. Despite higher EBITDA margin,
PAT margins witnessed a marginal decline and stood at 11.7% in Q4FY11
against 11.9% in Q4FY10. This was mainly on account of higher tax of |
2.3 crore paid during the quarter against a tax write-back of | 0.7 crore in
the corresponding quarter last year.
ƒ Consolidated results
Nitin Fire’s consolidated Q4FY11 results are not comparable with the
corresponding period last year due to an associate company becoming a
step down subsidiary (from April 1, 2010). Prior to this, it was an associate
while a wholly-owned subsidiary became an associate (from December
29, 2010).
The company’s consolidated Q4FY11 and FY11 sales stood at | 83.6 crore
and | 437.8 crore, respectively. The margins for the quarter stood at
22.5% and for the year at 15.3%. The PAT for the quarter ended was |
10.6 crore and for the year was | 53.4 crore. For 2011, the company
reported other income of | 12.9 crore (profit from sale of business).
Hence, the adjusted PAT for FY11 stood at | 40.5 crore.
V a l u a t i o n
At the CMP, the stock is trading at 13.3x and 12.7x its FY12E and FY13E
EPS of | 7.2 and | 7.6, respectively. The stock has run up significantly in
the past two or three months from | 60 (February, 2011) to | 100 (May,
2011). Hence, we believe it is fairly priced. We value the stock at 12x its
FY13E EPS of | 7.6, assigning it a HOLD rating with a TP of | 91.
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