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Praj Industries
O r d e r b o o k c o n t i n u e s t o s t r e n g t h e n …
Praj Industries reported its Q1FY12 results with a robust increase in sales
increasing ~75% YoY to | 164.3 crore from | 93.7 crore in Q1FY11.
However, the change in the sales mix (higher domestic sales) coupled
with higher raw material cost (~61% of net sales over ~54% in Q1FY11)
pulled down margins considerably to ~9.3% from ~29.8% in Q1FY11.
Therefore, in spite of a healthy growth in sales, bottomline growth
remained relatively moderate and stood at | 13.7 crore in Q1FY12 against
| 10.4 crore in Q1FY11.
ƒ Revenue mix
Revenues during the quarter accounted for a higher share (~65%) from
the domestic markets than the international markets. A higher
contribution from overseas helps the company to report better margins,
which consequently witnessed a dip in Q1FY12. The segment wise breakup of revenues included ~75% from ethanol & distillery, ~17% from
brewery plant and ~8% from software and waste-water management.
ƒ Order book position
During the quarter, the company received orders worth | 265 crore
(accounted by ~60% international and ~40% domestic) with ~80% for
ethanol distillery segment, 11% from the brewery segment and ~8% for
waste water segment. Hence, the company’s order book at the end of the
quarter stands at ~| 850 crore (50% international). The time frame of
execution for the orders is ~nine to 10 months.
V a l u a t i o n
At the CMP of | 89, the stock is trading at 18.7x and 15.8x its FY12 and
FY13 estimated EPS of | 4.7 and | 5.6, respectively. With the company’s
order book increasing ~21% YoY to | 850 crore and beginning of
overseas order inflows for water and waste treatment, we expect sales
and earnings to continue witnessing substantial improvement. Therefore,
we have valued the stock at 14x its FY13E EPS of | 5.6 and included the
cash value per share of | 22. We have arrived at a target price of | 100
and assigned it a BUY rating
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
Praj Industries
O r d e r b o o k c o n t i n u e s t o s t r e n g t h e n …
Praj Industries reported its Q1FY12 results with a robust increase in sales
increasing ~75% YoY to | 164.3 crore from | 93.7 crore in Q1FY11.
However, the change in the sales mix (higher domestic sales) coupled
with higher raw material cost (~61% of net sales over ~54% in Q1FY11)
pulled down margins considerably to ~9.3% from ~29.8% in Q1FY11.
Therefore, in spite of a healthy growth in sales, bottomline growth
remained relatively moderate and stood at | 13.7 crore in Q1FY12 against
| 10.4 crore in Q1FY11.
ƒ Revenue mix
Revenues during the quarter accounted for a higher share (~65%) from
the domestic markets than the international markets. A higher
contribution from overseas helps the company to report better margins,
which consequently witnessed a dip in Q1FY12. The segment wise breakup of revenues included ~75% from ethanol & distillery, ~17% from
brewery plant and ~8% from software and waste-water management.
ƒ Order book position
During the quarter, the company received orders worth | 265 crore
(accounted by ~60% international and ~40% domestic) with ~80% for
ethanol distillery segment, 11% from the brewery segment and ~8% for
waste water segment. Hence, the company’s order book at the end of the
quarter stands at ~| 850 crore (50% international). The time frame of
execution for the orders is ~nine to 10 months.
V a l u a t i o n
At the CMP of | 89, the stock is trading at 18.7x and 15.8x its FY12 and
FY13 estimated EPS of | 4.7 and | 5.6, respectively. With the company’s
order book increasing ~21% YoY to | 850 crore and beginning of
overseas order inflows for water and waste treatment, we expect sales
and earnings to continue witnessing substantial improvement. Therefore,
we have valued the stock at 14x its FY13E EPS of | 5.6 and included the
cash value per share of | 22. We have arrived at a target price of | 100
and assigned it a BUY rating
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