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P e r f o r m s w e l l …
HEG Ltd’s (HEG) Q3FY12 numbers were better then our expectation on the
back of healthy sales volumes. The topline came at | 418.0 crore (our
estimate: | 317.8 crore), which was 34.7% higher YoY and 30.9% QoQ. The
EBITDA margin increased 660 bps QoQ but was lower by 200 bps YoY at
20.4%. The subsequent EBITDA stood at | 85.1 crore (our estimate: | 58.2
crore), which was 22.1% higher YoY and 92.7% QoQ. In the quarter under
review, the company reported exceptional items to the tune of | 35.5 crore.
Exceptional items represent forex realisation losses on hedges and foreign
currency borrowings. As a result, the ensuing reported PAT stood at | 24.0
crore.
ƒ Healthy growth in sales volume
HEG reported healthy numbers for Q3FY12 on the back of robust sales
volumes. During the quarter under review, an optimised product mix
led to record capacity utilisation over 100%. Exports also witnessed a
significant growth momentum. The management expects higher
capacity utilisation levels to sustain, going forward.
V a l u a t i o n
At the CMP of | 206, the stock is trading at FY13E P/E of 5.0x and FY13E
EV/EBITDA of 5.6x. We have valued the stock at a 15% discount to the
global average of 6.6x CY12E EV/EBITDA, thus arriving at a target price of
| 219. We have assigned a HOLD rating to the stock
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
PDF link for report- click here
P e r f o r m s w e l l …
HEG Ltd’s (HEG) Q3FY12 numbers were better then our expectation on the
back of healthy sales volumes. The topline came at | 418.0 crore (our
estimate: | 317.8 crore), which was 34.7% higher YoY and 30.9% QoQ. The
EBITDA margin increased 660 bps QoQ but was lower by 200 bps YoY at
20.4%. The subsequent EBITDA stood at | 85.1 crore (our estimate: | 58.2
crore), which was 22.1% higher YoY and 92.7% QoQ. In the quarter under
review, the company reported exceptional items to the tune of | 35.5 crore.
Exceptional items represent forex realisation losses on hedges and foreign
currency borrowings. As a result, the ensuing reported PAT stood at | 24.0
crore.
ƒ Healthy growth in sales volume
HEG reported healthy numbers for Q3FY12 on the back of robust sales
volumes. During the quarter under review, an optimised product mix
led to record capacity utilisation over 100%. Exports also witnessed a
significant growth momentum. The management expects higher
capacity utilisation levels to sustain, going forward.
V a l u a t i o n
At the CMP of | 206, the stock is trading at FY13E P/E of 5.0x and FY13E
EV/EBITDA of 5.6x. We have valued the stock at a 15% discount to the
global average of 6.6x CY12E EV/EBITDA, thus arriving at a target price of
| 219. We have assigned a HOLD rating to the stock
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