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India Equity Research Reports, IPO and Stock News
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Q o Q m a r g i n i m p r o v e m e n t , p o s i t i v e s u r p r i s e …
Opto Circuits’ Q3FY12 results were above our expectations. Net sales
grew by 46.4% to | 611.3 crore, slightly above our estimates of | 584
crore, driven by overall business growth, a favourable currency and
additional one months sales of CSC. Excluding sales from cardiac from
both in Q3FY12 and Q3FY11 and currency benefit, the like-to-like sales
grew 23% YoY. After two muted quarters, the invasive segment clocked
healthy growth of 25% YoY to | 130 crore. The EBITDA margin declined
~140 bps YoY to 28% due to consolidation of Cardiac Science
Corporation (CSC) but surprisingly the margins expanded 50 bps QoQ.
The increase in the interest cost during the quarter restricted net profit
growth to 31% to | 125 crore, above our expectation of |112 crore. The
board also announced a bonus issue in the ratio of 3:10. We are
maintaining our BUY rating on the stock.
ƒ Plans to launch MySense Heart device in US market in Q4FY12
The non-invasive (medical devices and consumables) segment
witnessed robust growth of 56% to | 477 crore on the back of
consolidation of Cardiac Science, newly owned tenders and restarted distribution of Powerheart AED in the Japanese market.
During the quarter, Opto Circuits received USFDA approval for
wearable Holter cardiac monitor MySense Heart. The company is
planning to launch the device in the US market at the fag end of
FY12 and also in other geographies in FY13. It will also launch low
cost AED in the US market in Q4FY12.
V a l u a t i o n
New product launches and tapping new geographies for existing
products augurs well for the company to maintain the growth tempo.
Commissioning of the Vizag and Malaysian facilities post approval will
give further boost to the improved performance. Stretched working
capital cycle, however, still remains a drag on the valuation. We expect
sales, EBITDA and PAT to grow at a CAGR of 30%, 28% and 19%,
respectively, during FY11-13E. We have valued the stock at 11x FY13E
EPS of | 28.1. We maintain our BUY recommendation.
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
PDF link for report- click here
Q o Q m a r g i n i m p r o v e m e n t , p o s i t i v e s u r p r i s e …
Opto Circuits’ Q3FY12 results were above our expectations. Net sales
grew by 46.4% to | 611.3 crore, slightly above our estimates of | 584
crore, driven by overall business growth, a favourable currency and
additional one months sales of CSC. Excluding sales from cardiac from
both in Q3FY12 and Q3FY11 and currency benefit, the like-to-like sales
grew 23% YoY. After two muted quarters, the invasive segment clocked
healthy growth of 25% YoY to | 130 crore. The EBITDA margin declined
~140 bps YoY to 28% due to consolidation of Cardiac Science
Corporation (CSC) but surprisingly the margins expanded 50 bps QoQ.
The increase in the interest cost during the quarter restricted net profit
growth to 31% to | 125 crore, above our expectation of |112 crore. The
board also announced a bonus issue in the ratio of 3:10. We are
maintaining our BUY rating on the stock.
ƒ Plans to launch MySense Heart device in US market in Q4FY12
The non-invasive (medical devices and consumables) segment
witnessed robust growth of 56% to | 477 crore on the back of
consolidation of Cardiac Science, newly owned tenders and restarted distribution of Powerheart AED in the Japanese market.
During the quarter, Opto Circuits received USFDA approval for
wearable Holter cardiac monitor MySense Heart. The company is
planning to launch the device in the US market at the fag end of
FY12 and also in other geographies in FY13. It will also launch low
cost AED in the US market in Q4FY12.
V a l u a t i o n
New product launches and tapping new geographies for existing
products augurs well for the company to maintain the growth tempo.
Commissioning of the Vizag and Malaysian facilities post approval will
give further boost to the improved performance. Stretched working
capital cycle, however, still remains a drag on the valuation. We expect
sales, EBITDA and PAT to grow at a CAGR of 30%, 28% and 19%,
respectively, during FY11-13E. We have valued the stock at 11x FY13E
EPS of | 28.1. We maintain our BUY recommendation.
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