Please Share:: 
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
For 2QFY2012, Punj Lloyd (Punj) posted a mixed set of numbers with decent
performance on the revenue front and stable margin; however, the company
reported profit only on account of higher other income (mainly foreign exchange
gains) barring which it suffered operational loss. Punj has received orders worth
`10,286cr (commendable job in a gloomy environment) during 1HFY2012
against `9,978cr in FY2011, taking its order backlog to `26,690cr (3.4x FY2011
revenue). However, we maintain our Neutral view on the stock on account of
various overhangs – uncertainty over receivable claims, stretched working capital,
auditor qualifications and increasing leverage on the balance sheet.
Other income saves earnings from slipping into red: For 2QFY2012, Punj posted
20.3% yoy top-line growth to `2,392cr (`1,988cr). On a sequential basis as well,
revenue increased by 5.7%. EBITDA margin for the quarter stood at 8.4% against
9.2% in 2QFY2011. Interest cost jumped by 40.6% yoy and 14.6% qoq to
`129.9cr (`92.4cr). Depreciation cost came in at `78.1cr (`67.9cr). On the
earnings front, Punj reported profit of `24.7cr (`23.9cr), yoy growth of 3.4%,
owing to other income of `67.7cr – which was mainly on account of one-time
income and forex gain.
Outlook and valuation: The infrastructure sector has been marred by concerns
such as high interest cost, margin pressure due to high commodity prices and
higher working capital requirements. On account of these concerns and
continued disappointing performance since the past few quarters (except
4QFY2011), the stock has demonstrated huge underperformance over the past
12 months on the bourses. We have valued Punj on 0.75x P/BV (FY2013) and
have arrived at a fair value of `71. Although our fair value offers an upside of
20.0% from current levels, we continue to remain Neutral on the stock due to
headwinds faced by the sector and the company (mentioned above).
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
For 2QFY2012, Punj Lloyd (Punj) posted a mixed set of numbers with decent
performance on the revenue front and stable margin; however, the company
reported profit only on account of higher other income (mainly foreign exchange
gains) barring which it suffered operational loss. Punj has received orders worth
`10,286cr (commendable job in a gloomy environment) during 1HFY2012
against `9,978cr in FY2011, taking its order backlog to `26,690cr (3.4x FY2011
revenue). However, we maintain our Neutral view on the stock on account of
various overhangs – uncertainty over receivable claims, stretched working capital,
auditor qualifications and increasing leverage on the balance sheet.
Other income saves earnings from slipping into red: For 2QFY2012, Punj posted
20.3% yoy top-line growth to `2,392cr (`1,988cr). On a sequential basis as well,
revenue increased by 5.7%. EBITDA margin for the quarter stood at 8.4% against
9.2% in 2QFY2011. Interest cost jumped by 40.6% yoy and 14.6% qoq to
`129.9cr (`92.4cr). Depreciation cost came in at `78.1cr (`67.9cr). On the
earnings front, Punj reported profit of `24.7cr (`23.9cr), yoy growth of 3.4%,
owing to other income of `67.7cr – which was mainly on account of one-time
income and forex gain.
Outlook and valuation: The infrastructure sector has been marred by concerns
such as high interest cost, margin pressure due to high commodity prices and
higher working capital requirements. On account of these concerns and
continued disappointing performance since the past few quarters (except
4QFY2011), the stock has demonstrated huge underperformance over the past
12 months on the bourses. We have valued Punj on 0.75x P/BV (FY2013) and
have arrived at a fair value of `71. Although our fair value offers an upside of
20.0% from current levels, we continue to remain Neutral on the stock due to
headwinds faced by the sector and the company (mentioned above).
No comments:
Post a Comment