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S u s t a i n a b l e o r d e r i n f l o w s …
Praj Industries posted strong Q3FY12 results with topline growth of 54%
to | 219.3 crore compared to | 148.2 crore in Q3FY11. Out of the total
sales, 50% is from the domestic business and the rest from the
international business. Raw material to sales increased from 62.9% in
Q3FY11 to 63.6% of the sales in the quarter. Despite high raw material
cost, EBITDA margins improved by 180 bps to 9.4% led by increasing
enquiries/higher engineering income from domestic as well as African
region. Other income increased from | 6.7 crore to | 10.3 crore on
account of higher treasury gains. Higher EBITDA and other income
resulted in a 50.3% jump in net profit from | 13.7 crore to | 21.5 crore.
ƒ Highlights of the quarter
The company received orders worth | 220 crore (~85% domestic orders
and ~15% exports orders) during the quarter. Order inflow constitutes
58% of orders from ethanol and 42% non-ethanol segment (out of this
29% from beer and 71% waste water management). Total order book at
the end of the quarter stands at | 900 crore (46% international & 54%
domestic). In the total order book, 74% comprises ethanol based orders &
26% non-ethanol (out of which 40% is from the waste water segment).
V a l u a t i o n
At the CMP, the stock is trading at 19.5x and 15.6x its FY12E and FY13E
EPS of | 4.1 and | 5.1, respectively. With a sustainable order book at
| 900 crore and continuous order inflows to the tune of | 200 crore, the
outlook for the ethanol equipment is improving. We believe the rise in
ethanol prices and rising ethanol demand to more than 1000 million litres
in domestic market would further improve the demand for ethanol
equipment and more enquiries would result in higher engineering income
and, in turn, higher margins, going forward. We remain positive on the
stock and maintain our BUY rating and target price of | 96/share.
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
S u s t a i n a b l e o r d e r i n f l o w s …
Praj Industries posted strong Q3FY12 results with topline growth of 54%
to | 219.3 crore compared to | 148.2 crore in Q3FY11. Out of the total
sales, 50% is from the domestic business and the rest from the
international business. Raw material to sales increased from 62.9% in
Q3FY11 to 63.6% of the sales in the quarter. Despite high raw material
cost, EBITDA margins improved by 180 bps to 9.4% led by increasing
enquiries/higher engineering income from domestic as well as African
region. Other income increased from | 6.7 crore to | 10.3 crore on
account of higher treasury gains. Higher EBITDA and other income
resulted in a 50.3% jump in net profit from | 13.7 crore to | 21.5 crore.
ƒ Highlights of the quarter
The company received orders worth | 220 crore (~85% domestic orders
and ~15% exports orders) during the quarter. Order inflow constitutes
58% of orders from ethanol and 42% non-ethanol segment (out of this
29% from beer and 71% waste water management). Total order book at
the end of the quarter stands at | 900 crore (46% international & 54%
domestic). In the total order book, 74% comprises ethanol based orders &
26% non-ethanol (out of which 40% is from the waste water segment).
V a l u a t i o n
At the CMP, the stock is trading at 19.5x and 15.6x its FY12E and FY13E
EPS of | 4.1 and | 5.1, respectively. With a sustainable order book at
| 900 crore and continuous order inflows to the tune of | 200 crore, the
outlook for the ethanol equipment is improving. We believe the rise in
ethanol prices and rising ethanol demand to more than 1000 million litres
in domestic market would further improve the demand for ethanol
equipment and more enquiries would result in higher engineering income
and, in turn, higher margins, going forward. We remain positive on the
stock and maintain our BUY rating and target price of | 96/share.
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