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At the CMP of Rs.52, the stock P/E ratio is at 11.4x/9.9x/8.5x for FY14-16E respectively. EPS of the company for the earnings for FY14-15E is seen
at Rs. 4.3/5.3/6.2 respectively. Net Sales of the company are expected to grow at a CAGR of 15%over FY14-16E. We expect that the company
surplus scenario is likely to continue for the next three years, will keep its growth story in the coming quarters also. We maintain ‘Buy’ in this
particular scrip with a target price of Rs 65 for medium to long term investment. .................................. ( Page : 6-7 )
"BUY" 5th Feb 2014
on back of cut down by managemet of FY14E guidence (Sale volume 3.76 mnsft, earlier 4.2 mnsft and Sales value 2200 crore, earlier, 2600 crore)
we cut down our FY14-FY15E earninng estimates by 26%/15%. We expect the sales of the company to grow by 17% & by 20% yoy inFY14E &
FY15E, however operating margin will sustain at 28.0%/28.5% over the same period. At the CMP of Rs. 276 the stock is trading at PE of 11.0x
FY14E & 8.5x FY15E. We maintain our "Buy" rating on stock with revised price target of Rs. 350 per share based on P/BV of 1.5x and 1.3x of
FY14E and FY15E. ........................................ ( Page : 4-5)
Suprajit Engineering Ltd: "On top gear….."
Sobha Developers Ltd: "New launches to spur growth"
5th Feb, 2014
Edition : 199
IEA-Equity
Strategy
"BUY" 5th Feb 2014
"NEUTRAL" 5th Feb 2014
The company registered its 3QFY14 net sales at Rs 687 Cr up by up 29% YoY led by strong growth across its key molecules. There has been
recovery in ex-currency growth from the high single digits witnessed in the past two quarters. …………………. ( Page : 2-3)
DIVISLAB : Strong Results
Godrej Consumer Product :" Strategy Shining" "BUY" 4th Feb 2014
For 3QFY14, Godrej CP revealed inline set of numbers with 17% sales growth led by 18% domestic and 25% international sales growth, reported
growth across all geographies and segments, respectively. With launching new products in domestic as well as international market, Godrej CP
will explore organic & inorganic growth. Along with its 3x3 strategy, it has 10x10 strategy also, which refers to 10x growth in 10 yrs.
.............................................. ( Page : 16 -18)
Kalpatru Power Transmission : "Missed one……." "BUY" 4th Feb 2014
At CMP of Rs.75.6, KPTL tradesat 7.6x FY14 EPS and 5.5x FY15 EPS. To factor in robust revenue growth, we revise revenue estimates for
FY14/FY15 by 5.1%/1.0% respectively. On account of continued losses and low margin orders in the infrastructure segment we revise standalone
EBIDTA margins as well to 9.7% for FY14 and 10.0% for FY15. Hence, we maintain "Buy"rating with target price at Rs.95/share.
................................................ ( Page : 12-15)
Kolte-Patil Developers: "On track to meet FY14 guidence" "BUY" 4th Feb 2014
At the CMP of Rs.91, the stock P/E ratio is at 4.6x FY14E and 3.8x FY15E respectively. EPS of the company for the earnings for FY14E and FY15E is
seen at Rs. 19.6 and Rs.23.8 respectively. Net Sales and PAT of the company are expected to grow at a CAGR of 68% and 69% over FY13-15E
respectively. On the basis of Intrest coverage ratio, the stock trades at 7.5x for FY14E and 9.1x for FY15E. Price to Book Value of the stock is
expected to be at 0.7x and 0.8x respectively for FY14E and FY15E at current price . We expect that the company surplus scenario is likely to
continue for the next three years, will keep its growth story in the coming quarters also. We maintain ‘Buy’ in this particular scrip with a target
price of Rs 120 for medium to long term investment. .......................... ( Page : 10-11)
"BUY" 4th Feb 2014
At the CMP of INR610, the stock discounts its FY14E EPS of INR53.20 by 10.8x and FY15E EPS of INR61.2 by 9.8x. Given the strong revenue
growth at a CAGR of 21%; PAT growth at CAGR of 26% post acquisition and stable margins at ~15%, the company is poised to grow further and
capable of ustaining its healthy earnings. Also, Company assurance of 30-60% dividend payout ratio implies an attractive dividend yield of 4-9%.
So taking all this into consideration share looks reasonable at Rs. 610 as long term fundamental continue to remains intact and one can expect
growth of about maybe 10-13% in next eight-twelve months time. We upgrade our rating on stock from "Hold" to "accumulate", with a revised
price target to Rs 648 ................................. ( Page :8-9)
SWARAJ ENGINES: "Long term fundamental continue to remains intact "
Narnolia Securities Ltd,
India Equity AnalyticsDaily Fundamental Report on Indian Equities
1M 1yr YTD
Absolute 7.6 26.2 15.5
Rel. to Nifty 11 26.17 3.5
Current 2QFY14 1QFY1
4Promoters 52.1 52.1 52.2
FII 16.3 15.8 14.8
DII 13.2 12.5 12.5
Others 18.5 19.5 20.5
Financials Rs, Crore
3QFY14 2QFY14 (QoQ)-% 3QFY13 (YoY)-%
Revenue 689 567 21.5 534 29.0
EBITDA 287 249 15.3 182 57.7
PAT 218 205 6.3 143 52.4
EBITDA Margin 41.7% 43.9% (230bps) 34.1% 760bps
PAT Margin 31.6% 36.2% (450bps) 26.8% 490bps
2
Upside
Change from Previous 5%
Previous Target Price
Key takeaways from management interaction
> Sales from DSN SEZ (all 5 units) are at of Rs 3.3 Bn for 9MFY14 (versus Rs 2.2 Bn in
FY2013). The company has total investments of Rs 6.0 Bn in the DSN SEZ and expects the
asset turnover to be 1.8-2.0 times.
Result Update NEUTRAL
1350
CMP 1337
The company registered its 3QFY14 net sales at Rs 687 Cr up by up 29% YoY led by strong
growth across its key molecules. There has been recovery in ex-currency growth from the
high single digits witnessed in the past two quarters.
> There has been reduction in power and fuel cost since August 2013 with 160 bps decline
on a sequential basis.
>CWIP is at Rs1.8 Bn at the end of 9MFY14. There has been a sharp increase in
receivables at Rs 7.1 Bn – 108 days versus 86 days in FY2013. Inventory days have
improved to 140 days in 9MFY14 versus 161 days in 1HFY14.
View & Valuation
The profits after tax came at Rs 218 Cr and NPM at 31.7 %.The other income for the
quarter came at Rs 8 Cr verses 22 Cr for the same time last fiscal. The tax rate for the
quarter was lower on yearly basis at 20 %.Forex Loss for the current quarter amounted to
Rs 5 Cr while there was a forex gain of Rs 16 Cr during the corresponding quarter last year.
Please refer to the Disclaimers at the end of this Report.
Stock Performance-%
Share Holding Pattern-%
Mkt Capital (Rs, Cr)
One Year Price vs Nifty
(Source: Company/Eastwind)
17842
Average Daily Volume 5.43
Nifty 6000
The stock at CPM of Rs 1337 is trading at 22.05 x of one year forward FY14E EPS of Rs
61.The stock has achieved our recommended Target price of Rs 1350 and therefore
we change our view to Neutral from BUY. The strong 3QFY14 results ,improvement in
operating metrics, Currency movement are few factor which still provide some upsides. We
have slightly revised our target price upwards to Rs 1420 based on our analysis.
52wk Range H/L 1390/905
NSE Symbol DIVISLAB
Market Data
BSE Code 532488
> Carotenoid sales for 9MFY14 are at Rs 910 Mn and expected to reach Rs1.5 Bn for
FY2015.
>The company expects the inspection (by regulatory/customers) for the 3 additional units at
DSN SEZ in 4QFY14. Sales from these units are expected to ramp up in 2QFY15.
DIVISLABStrong Results
Target Price 1420
The operating EBITDA for the quarter under review came at Rs 288 Cr and OPM at
41.7%.The operating margins improve by almost 760bps on the back of improvement in
company’s operating metrics, currency benefits and lower power cost . The RM cost to
sales for the quarter came at 36% while it was 49 % for the same time last fiscal. The
employ cost as percentage of sales also showed improvement of 100 bps on yearly basis.
The company has cut down its other expenses for the quarter to Rs 88 and it stands at 13
% of the net sales from 8% a year ago.
6%
"NEUTRAL"05th Feb' 14
Narnolia Securities Ltd,
3
DIVISLAB
Sales and PAT Trend (Rs)
(Source: Company/Eastwind)
Net sales at Rs 687 Cr up by up 29% YoY led
by strong growth across its key molecules.
Operating margins improve by almost 800bps
on the back of improvement in company’s
operating metrics, currency benefits and
lower power cost .
OPM %
(Source: Company/Eastwind)
NPM %
(Source: Company/Eastwind)
Please refer to the Disclaimers at the end of this Report.
The tax rate for the quarter was lower on
yearly basis at 20 %.Forex Loss for the current
quarter amounted to Rs 5 Cr
Narnolia Securities Ltd,
Sobha Developers Ltd.
Buy276
350
460
27%
-24%
532784
SOBHA
282/472
3052
105448
6002
1M 1yr YTD
Absolute -17 -36 -21
Rel. to Nifty (14) -35 (27)
3QFY14 2QFY14 1QFY14
Promoters 60.6 60.6 60.6
FII 32.7 33.2 33.5
DII 2.9 2.6 2.8
Others 3.9 3.7 3.1
Financials Rs, Crore
3QFY14 2QFY14 (QoQ)-% 3QFY13 (YoY)-%
Revenue 544.3 540.8 0.6 429.8 26.6
EBITDA 149.0 143.3 4.0 137.4 8.4
PAT 58.3 56.6 3.0 52.6 10.8
EBITDA Margin 27.4% 26.5% 90 bps 32.0% (460) bps
PAT Margin 10.7% 10.8% (10) bps 12.2% (150) bps
4
Sobha had at the begning of the fiscal set guidence of new sales area of 4.20 mnsft at Rs. 2600
crore for the current fiscal. At the close of 3 quarters of FY14, the company has registered a new
sales area of 2.66 mnsft valued at 1737 crore. However, post 3QFY14 result, management had
lowered his sales volume and booking guidence to 3.76 mnsft and Rs. 2200 crore largely
attributed to delay in approvels
Growth story remain intact;
The firm had launched two new projects: 0.66 mnsft of developable area and 0.46 mnsft of
saleable area in 3QFY14 and six new projects: 3.38 mnsft of developable area and 2.01 mnsft of
saleable area in 9MFY14. In CY14, the firm has plans to launch 11 mnsft, and out of which 3
mnsft in 4QFY14 especially in the Rs7.5-15mn price bracket that continues to see stable demand
as a result we able to belive that company will able to achive is revised sales volume guidence for
FY14E.
Nifty
Lowered FY14E sales volume & revenue Guidence
Please refer to the Disclaimers at the end of this Report.
Stock Performance-%
Share Holding Pattern-%
1 yr Forward P/B
Valuations;
on back of cut down by managemet of FY14E guidence (Sale volume 3.76 mnsft, earlier 4.2 mnsft
and Sales value 2200 crore, earlier, 2600 crore) we cut down our FY14-FY15E earninng estimates
by 26%/15%. We expect the sales of the company to grow by 17% & by 20% yoy inFY14E &
FY15E, however operating margin will sustain at 28.0%/28.5% over the same period. At the CMP
of Rs. 276 the stock is trading at PE of 11.0x FY14E & 8.5x FY15E. We maintain our "Buy" rating
on stock with revised price target of Rs. 350 per share based on P/BV of 1.5x and 1.3x of FY14E
and FY15E.
(Source: Company/Eastwind)
Previous Target Price
Market DataBSE Code
Average Daily Volume (Nos.)
NSE Symbol
52wk Range H/L
Mkt Capital (Rs Crores)
Despite of week volume numbers in NCR & Chennai Sobha reported its Q3FY14 numbers with a
topline that was inline street expectations at Rs. 544.3 crore. EBITDA for the quarter stood at
Rs. 149.0 crore, growing 8.4% yoy. The EBITDA margin were down 460 bps, yoy and stands at
27.4% during the quarter mainly on account of higher proportion of contractual projects
segment (this segment fetches about 20 per cent margins compared with property
development business’ 35 per cent and increase in input costs. However managemnet assures
that goinf forward margins should be around 28 percent and at profit before tax (PBT) and
profit after tax (PAT) level we are at 10 percent to 11 percent level. We maintain our "Buy"
rating on stock, however on back of cut down by managemet of FY14E guidence (Sale volume
3.76 mnsft, earlier 4.2 mnsft and Sales value 2200 crore, earlier, 2600 crore) we cut down our
FY14-FY15E earninng estimates by 26%/15% and also reduce our price target to Rs. 350
"New launches to spur growth….."
Upside
Change from Previous
Result updateCMP
Target Price
"Buy"5th Feb' 14
Narnolia Securities Ltd,
5
Ammount in crores (Source: Company/Eastwind)
SOBHA DEVELOPERS Ltd.
Key financials :
Please refer to the Disclaimers at the end of this Report.
Narnolia Securities Ltd,
PARTICULAR 2010A 2011A 2012A 2013A 2014E 2015E
Performance
Revenue 1130 1394 1408 1865 2180 2616
Other Income 4 5 6 6 6 6
Total Income 1134 1400 1414 1870 2186 2622
EBITDA 264 360 467 548 610 746
EBIT 231 332 428 489 542 674
DEPRICIATION 32 28 39 59 68 72
INTREST COST 69 86 117 171 175 200
PBT 166 251 318 324 373 479
TAX 27 67 108 107 126 162
Extra Oridiniary Items NA NA NA NA NA NA
Reported PAT 139 185 210 217 247 317
Dividend (INR) 25 29 49 69 69 69
DPS 2.4 3.0 5.0 7.0 7.0 7.0
EPS 13.6 18.8 21.4 22.1 25.2 32.3
Yeild %
EBITDA % 23.3% 25.8% 33.1% 29.4% 28.0% 28.5%
NPM % 12.2% 13.2% 14.9% 11.6% 11.3% 12.1%
Earning Yeild % 5.0% 6.9% 6.5% 6.3% 9.1% 11.7%
Dividend Yeild % 0.9% 1.1% 1.5% 2.0% 2.5% 2.5%
ROE % 8.1% 10.0% 10.5% 10.2% 10.7% 12.4%
ROCE% 6.5% 8.7% 10.1% 11.1% 11.1% 11.8%
Suprajit Engineering Ltd.
Buy52
65
NA
25%
NA
532509
32/62
624
10772
6002
1M 1yr YTD
Absolute -3 56 57
Rel. to Nifty 1 57 51
3QFY14 2QFY14 1QFY14
Promoters 51.8 51.8 51.8
FII 1.9 1.4 0.9
DII 1.6 1.7 1.4
Others 44.7 45.1 45.9
Valuations
Financials Rs, Crore
3QFY14 2QFY14 (QoQ)-% 3QFY13 (YoY)-%
Revenue 159.5 123.1 29.6 123.1 29.5
EBITDA 30.0 21.0 43.0 20.0 49.9
PAT 16.2 13.9 16.2 10.8 49.1
EBITDA Margin 18.8% 17.1% 170 bps 16.3% 250 bps
PAT Margin 10.2% 11.1% (90) bps 8.8% 140 bps
(Consolidated)
6
NSE Symbol
52wk Range H/L
SUPRAJIT
Despite adverse market conditions, for the quarter ended December 2013, Suprajit Engineering
registered a good 30% rise in consolidated sales (including other operating income) to Rs
159.53 crore. OPM jumped 260 basis points to 18.8% which lifted OP growth to 50% to Rs
30.02 crore. Other income stood at negative Rs 68 lakh (against Rs 29 lakh) and interest cost
jumped 27% to Rs 3.43 crore. After providing for depreciation (up 14% to Rs 2.26 crore), PBT
jumped 51% to Rs 23.65 crore. Whereas tax grew 62% to Rs 7.50 crore after which PAT grew
47% to Rs 16.1 crore. Aftermarket and non-automotive exports business clocked robust
growths of 35% and 45% respectively. Suprajit Engineering (SEL) continues to deliver robust
margins (at 16-17%) despite weakness in the automotive space. With healthy return ratios (RoE
~30%, RoCE ~25%) and strong balance sheet. We expect a revenue growth for FY14-16E by 15%
on back of strong capacity expansion plan abd growth potential in the business. We modelled
our valuation parameteres, which make us believe that share is trading at lower then fair value
at current market price. We have "Buy" rating on stock with a Target price of Rs. 65. Mkt Capital (Rs Crores)
Capex will see the company having the world's largest cable capacities
Nifty
Market DataBSE Code
Average Daily Volume (Nos.)
Please refer to the Disclaimers at the end of this Report.
Stock Performance-%
Share Holding Pattern-%
1 yr Forward P/B
(Source: Company/Eastwind)
The Board of Directors critically assessed the business prospects for the next two years and have
approved the following capex plans considering the business growth in the next two years.
• A new cable plant, measuring 80,000 sf.ft at Narsapura Industrial area, Karnataka, on the land
already in possession.
• A new cable plant measuring 50,000 sq.ft to meet the customer requirements in Chennai at the
recently allotted land at Vallam-Vadagal Industrial Park, Tamilnadu.
• Significant capacity expansion at the existing Pathredi plant, Rajasthan, with an additional plant
measuring 110,000 sq.ft.
• Complete renovation and refurbishing of an existing plant in Bommasandra, Bangalore to
relocate the aftermarket manufacturing facility to meet increased demand.
• Several balancing equipment and buildings in other existing units to fine-tune the capacities to
meet additional customer requirements.
• Additional equipments to add capacity at its 100% owned subsidiary, Suprajit Automotive.
• The capex for the above plans would be approximately Rs. 60 crore.
With these capex plans spread over the next 18-24 months, the company's standalone cable
capacity will exceed 200 mn cables / year and on a consolidated basis will exceed 225 mn cables
year. This would be one of the world's largest cable capacities.
At the CMP of Rs.52, the stock P/E ratio is at 11.4x/9.9x/8.5x for FY14-16E respectively. EPS of
the company for the earnings for FY14-15E is seen at Rs. 4.3/5.3/6.2 respectively. Net Sales of
the company are expected to grow at a CAGR of 15%over FY14-16E. We expect that the company
surplus scenario is likely to continue for the next three years, will keep its growth story in the
coming quarters also. We maintain ‘Buy’ in this particular scrip with a target price of Rs 65 for
medium to long term investment.
"On top gear….."
Upside
Change from Previous
Result updateCMP
Target Price
Previous Target Price
"Buy"5th Feb' 14
Narnolia Securities Ltd,
7
Ammount in crores (Source: Company/Eastwind)
SOBHA DEVELOPERS Ltd.
Key financials :
Please refer to the Disclaimers at the end of this Report.
Narnolia Securities Ltd,
PARTICULAR 2010A 2011A 2012A 2013A 2014E 2015E 2016E
Performance
Revenue 248 347 424 463 540 637 752
Other Income 0 5 3 3 7 7 7
Total Income 249 351 427 465 547 644 759
EBITDA 47 57 69 77 92 107 127
EBIT 40 50 61 69 84 97 115
DEPRICIATION 7 7 7 8 8 10 12
INTREST COST 6 7 9 10 13 15 17
PBT 34 47 55 67 78 89 105
TAX 11 13 15 20 23 26 31
Extra Oridiniary Items 0 0 0 5 0 0 0
Reported PAT 24 34 40 47 55 63 74
Dividend (INR) 6 6 9 10 15 17 19
DPS 0.5 0.5 0.8 0.9 1.2 1.4 1.6
EPS 2.0 2.8 3.3 3.9 4.6 5.3 6.2
Yeild %
EBITDA % 19.0% 16.5% 16.2% 16.7% 17.0% 16.9% 16.9%
NPM % 9.4% 9.6% 9.3% 10.1% 10.0% 9.8% 9.7%
Earning Yeild % 12.2% 15.1% 16.8% 11.8% 8.8% 10.1% 11.8%
Dividend Yeild % 3.1% 2.8% 3.8% 2.6% 2.4% 2.7% 3.0%
ROE % 33.5% 34.8% 30.8% 28.3% 26.5% 25.0% 24.1%
ROCE% 22.5% 25.3% 23.2% 20.6% 19.6% 18.9% 18.7%
Position
Net Worth 70 97 129 167 207 252 307
Total Debt 62 66 82 111 140 160 180
Capital Employed 132 163 212 278 347 412 487
No of Share (Adj) 12 12 12 12 12 12 12
CMP 16 19 20 33 52 52 52
Valuation
Book Value 5.9 8.1 10.8 13.9 17.2 21.0 25.6
P/B 2.7 2.3 1.8 2.4 3.0 2.5 2.0
Int/Coverage 6.5 6.8 6.6 6.8 6.4 6.5 6.7
P/E 8.2 6.6 6.0 8.5 11.4 9.9 8.5
V- SWARAJ ENGINES Ltd.
CMP 598
Target Price 648
600
Upside 8%
7%
BSE Code 500407
NSE Symbol
742
601
Nifty 6,002
1M 1yr YTD
Absolute (6.6) 24.3 51.4
Rel. to Nifty (2.3) 24.7 45.3
3QFY14 2QFY14 1QFY14
Promoters 50.6 50.6 50.6
FII 1.9 1.9 1.5
DII 10.6 10.4 10.6
Others 36.9 37.1 37.3 Valuations :
Financials Rs, Crore
3QFY14A 2QFY14A (Var)-% 3QFY13A (YoY)-%
Revenue 150.2 151.6 -0.9% 124.6 21.7%
EBITDA 21.8 22.7 -3.8% 18.4 23.3%
PAT 15.6 17.2 -9.5% 13.8 24.9%
EBITDA Margin 14.5% 14.9% (40) bps 14.8% (30) bps
PAT Margin 10.8% 11.0% (20) bps 10.7% 10 bps
8
(Standalone) (Source: Company/Eastwind Research)
Please refer to the Disclaimers at the end of this Report.
1 yr Forward P/B
At the CMP of INR610, the stock discounts its FY14E EPS of INR53.20 by 10.8x and FY15E EPS of
INR61.2 by 9.8x. Given the strong revenue growth at a CAGR of 21%; PAT growth at CAGR of 26%
post acquisition and stable margins at ~15%, the company is poised to grow further and capable
of ustaining its healthy earnings. Furthermore, despite the capex of INR58crore, the company has
strong cash flows and the company is debt free. Also, Company assurance of 30-60% dividend
payout ratio implies an attractive dividend yield of 4-9%. So taking all this into consideration
share looks reasonable at Rs. 610 as long term fundamental continue to remains intact and one
can expect growth of about maybe 10-13% in next eight-twelve months time. We upgrade our
rating on stock from "Hold" to "accumulate", with a revised price target to Rs 648.
We have modeled a 25% of revenue growth for FY15 yoy respectively, due to SWE’s ability to
maintain growth in product volume and recent enhancement in annual production capacity from
75,000 units to 105,000 units. Company currently operates at TTM EBITDA and net margin of
14.8% and 11.3% respectively, which provides sufficient cushion against operating cost. With
liquidity being moderate and cash flow positive, company has enough cash to finance its
expansion plan of Rs. 38 crore through internal accruals.
Outlook :
Leading supplier to Mahindra & Mahindra Ltd – A key source to growth: SEL enjoys the access to
the India’s largest tractor manufacturer “M&M” (41% market share in Domestic tractor industry),
which has a holding of 33% in SEL. Swaraj Engines Ltd manufactures tractor engines solely for the
“Swaraj Division” of M&M. It caters to ~80% demand of Swaraj division of M&M and rest 20% of
demand is met through Kirloskar Oil Engines, which has a holding of 17% in SEL. The demand
from M&M is estimated to grow further and reach ~85‐90%.
Leading supplier to Mahindra & Mahindra Ltd :
Share Holding Pattern-%
Stock Performance-%
Average Daily Volume
Mkt Capital (Rs Crores)
52wk Range H/L
Previous Target Price
SWARAJENG
Change from Previous
Market Data
382/535
" Long term fundamental continue to remains intact…. "
AccumulateResult update Swaraj Engines posted a moderate revenue growth of 20.8% to Rs. 150.2 crore during Q3FY14
over corresponding period of previous year due to 21.2% growth yoy reported in diesel engines
sales volume. Company sold 18,530 diesel engines during the quarter as compared to 15,288
engines sold during corresponding period of previous year. EBITDA of the company marginally
outpaced by the revenue due to unexpected rise in non operating expenses and stands at Rs.
21.8 crore up by 18.6% yoy. Though company managed to control material cost, which
constitutes ~90% of the total expenses; however, employee cost and administration expenses
reported the growth of 22.1% and 23.9% respectively during the quarter. As a result, EBITDA
and PBT margin reported a marginal deterioration of 24bps and 5bps during Q3FY14 yoy
respectively. PAT reflected in-line numbers and reported the yoy growth of 21.4% to Rs. 16.7
crore before extra ordiniary item of Rs. 1.15 crore; while PAT margin improved by 5bps.
"Accumulate"4th Feb' 14
Narnolia Securities Ltd,
9
9
Please refer to the Disclaimers at the end of this Report.
(Ammount in crore) (Source: Company/Eastwind)
SWARAJ ENGINES Ltd.
Key financials :
(Source: Company/Eastwind Research) (Figures In crore)
Narnolia Securities Ltd,
PARTICULAR 2009A 2010A 2011A 2012A 2013A 2014E 2015E
Performance
Revenue 208 282 361 449 479 602 750
Other Income 5 10 8 12 15 18 20
Total Income 213 292 369 461 494 620 770
EBITDA 32 50 61 69 71 87 109
EBIT 27 45 56 65 64 78 98
DEPRICIATION 5 5 4 4 7 9 11
INTREST COST 0 0 0 0 0 0 0
PBT 32 55 64 77 79 96 118
TAX 11 17 20 24 24 30 37
Reported PAT 21 37 44 53 55 66 81
Dividend 7 12 14 19 48 24 30
EPS 17.2 30.1 35.4 42.5 44.6 53.5 65.4
DPS 5.9 9.3 11.6 15.1 38.4 19.3 24.2
Yeild %
EBITDA % 15.3% 17.6% 16.8% 15.5% 14.9% 14.5% 14.5%
PBT % 15.1% 18.7% 17.4% 16.8% 16.1% 16.0% 15.7%
NPM % 10.0% 12.8% 11.9% 11.5% 11.2% 11.0% 10.8%
Earning Yeild % 8.0% 31.6% 12.2% 9.9% 11.3% 9.0% 10.9%
Dividend Yeild % 2.7% 9.8% 4.0% 3.5% 9.7% 3.2% 4.0%
ROE % 21.9% 30.4% 28.8% 28.4% 28.6% 28.1% 28.3%
ROCE% 21.9% 30.4% 28.8% 28.4% 28.6% 28.1% 28.3%
Position
Net Worth 97 123 152 186 194 236 287
No of Share 1 1 1 1 1 1 1
CMP 214 95 290 429 395 598 598
Valuation
Book Value 78.3 98.8 122.6 150.0 156.0 190.2 231.5
P/B 2.7 1.0 2.4 2.9 2.5 3.1 2.6
P/E 3.5 5.3 5.6 5.1 6.8 11.2 9.1
Net Sales/Equity 2.1 2.3 2.4 2.4 2.5 2.5 2.6
V- Kolte-Patil Developers Ltd.
CMP 74
Target Price 100
120
Upside 35%
0%
BSE Code 532924
NSE Symbol
558
239,587
Nifty 6,002
1M 1yr YTD
Absolute (18.8) (36.6) (16.3)
Rel. to Nifty (14.5) (36.3) (22.4)
3QFY14 2QFY14 1QFY14
Promoters 74.5 74.5 74.5
FII 1.4 1.4 1.5
DII 0.4 0.8 0.5
Others 23.8 23.5 23.5 Valuations
Financials Rs, Crore
3QFY14 2QFY14 (Var)-% 3QFY13 (YoY)-%
Revenue 188.1 188.6 -0.3% 225.4 -16.5%
EBITDA 57.3 60.3 -5.0% 62.9 -9.0%
PAT 20.4 32.2 -36.7% 30.6 -33.2%
EBITDA Margin 30.4% 32.0% (160) bps 27.9% 252 bps
PAT Margin 15.8% 18.3% (250) bps 16.6% (80) bps
10
Please refer to the Disclaimers at the end of this Report.
Change from Previous
Previous Target Price
KOLTEPATIL
1 yr Forward P/B
At the CMP of Rs.91, the stock P/E ratio is at 4.6x FY14E and 3.8x FY15E respectively. EPS of the
company for the earnings for FY14E and FY15E is seen at Rs. 19.6 and Rs.23.8 respectively. Net
Sales and PAT of the company are expected to grow at a CAGR of 68% and 69% over FY13-15E
respectively. On the basis of Intrest coverage ratio, the stock trades at 7.5x for FY14E and 9.1x for
FY15E. Price to Book Value of the stock is expected to be at 0.7x and 0.8x respectively for FY14E
and FY15E at current price . We expect that the company surplus scenario is likely to continue for
the next three years, will keep its growth story in the coming quarters also. We maintain ‘Buy’ in
this particular scrip with a target price of Rs 120 for medium to long term investment.
New sales booking recorded in Q3FY14 is 0.44 msf of which about 93% is residential and 7%
commercial projects. The sales value was worth Rs 253 crore. The Average price realization (APR)
for the quarter stood at Rs 5730/sft with average price for residential project stood at Rs
5421/sft and that for commercial project at Rs 9932/sft. The ongoing projects as end of Dec 2013
have a saleable area is 14.1 msf (KPDL's share is 9.3 msf) and of which the company already sold
about 7.8 msf with a sale value of Rs 3157.7 crore. Cumulative collection as end of Dec 2013 in
case of ongoing projects is about Rs 2442.7 crore and the collection in Q3FY14 stood at Rs 230
crore. In January 2014 launched 0.2 msf (of total saleable area of 0.9 msf) of Jazz Phase I at
Aundh. Jan 2, 2014 the company obtained final approval and started pre launch activity and
made 34 units as far as 0.6 msf Mirabilis, Horamavu, Bengaluru project. Gross debt excluding
compulsory convertible debentures (CCD) is Rs 205 crore and the net debt is Rs 127 crore. In
Q3FY14 recorded its first sale in Mumbai of 2,200 sft. at an APR of Rs 34375/sft.
Management Guidence
Management is hopeful of achiveing a topline target of Rs. 800-900 crore for FY14E and new area
sales booking of 1.8 - 2 msf for FY2014 with average price realization of Rs 5300/sft.
Mkt Capital (Rs Crores)
52wk Range H/L 49/115
Share Holding Pattern-%
Stock Performance-%
Market Data
(Source: Company/ Eastwind Research)
Average Daily Volume
Result update
"On track to meet FY14 guidence.........."
The company posted de-growth in its revenue and net profit during the third quarter
compared to same period last year. KPD's net revenue for Q3FY14 dipped to Rs 188 crore
against Rs 225 crore in Q3FY13. The company's net profit also decreased to Rs 20.40 crore in
Q3FY14 against Rs 30.52 crore in Q3FY13. However, the company's net revenues for first nine
months for FY14 grew by 15 per cent to Rs 593 crore against Rs 518 crore in 9MFY13.
Interestingly the company's EBITDA soared up by 45 per cent to Rs 181 crore in 9MFY14 on
yearly basis. This has improved its EBITDA margins by 630 basis points on yearly basis. The PAT
stood at Rs 79 crore in 9MFY14 against the PAT during same period in last financial year. Based
on revised volume guidence by management in range of 1.8-2.0mnsft, we cut our FY14/FY15
earnings by 5%/8% while maintaining BUY with a revised TP of Rs 100 (Rs 120 earlier)
Buy
"Buy"4th Feb' 14
Narnolia Securities Ltd,
11
Please refer to the Disclaimers at the end of this Report.
(Ammount in crore) (Source: Company/Eastwind)
Kolte-Patil Developers Ltd.
Key financials :
(Source: Eastwind Research) (Figures in crore)
Narnolia Securities Ltd,
PARTICULAR 2009A 2010A 2011A 2012A 2013A 2014E 2015E
Performance
Revenue 186 148 204 249 743 825 908
Other Income 50 5 5 10 7 7 18
Total Income 236 153 209 260 750 832 925
EBITDA 85 58 91 68 201 248 272
EBIT 84 57 89 66 196 240 265
DEPRICIATION 1 2 2 2 5 8 8
INTREST COST 8 8 7 24 42 46 46
PBT 126 54 87 50 160 201 237
TAX 40 16 30 14 55 69 81
Reported PAT 9 36 61 82 108 132 155
Dividend 8 8 12 12 30 30 30
EPS 11.5 5.0 7.5 4.7 16.4 17.4 20.5
DPS 1.0 1.0 1.6 1.6 4.0 4.0 4.0
Yeild %
EBITDA % 45.8% 39.5% 44.4% 27.2% 26.4% 30.0% 30.0%
NPM % 36.7% 24.7% 27.3% 13.8% 16.2% 15.9% 16.8%
Earning Yeild % 58.0% 9.3% 16.4% 12.1% 18.4% 23.7% 27.9%
Dividend Yeild % 5.1% 1.9% 3.5% 4.1% 4.5% 5.4% 5.4%
ROE % 13.2% 5.6% 8.2% 5.0% 17.3% 16.1% 16.4%
ROCE% 10.6% 4.6% 6.5% 3.8% 13.9% 12.3% 13.0%
Position
Net Worth 657 675 700 721 717 819 944
Total Debt 159 150 175 226 173 250 250
Capital Employed 816 824 874 947 891 1069 1194
No of Share 8 8 8 8 8 8 8
CMP 20 54 46 39 89 74 74
Valuation
Book Value 87.2 89.4 92.3 95.2 94.6 108.1 124.6
P/B 0.2 0.6 0.5 0.4 0.9 0.7 0.6
Int/Coverage 11.2 6.8 13.1 2.7 5.1 5.2 5.8
P/E 1.7 10.8 6.1 8.3 5.4 4.2 3.6
Kalpatru Power Transmission
Result CMP 73
Target Price 95
Previous
Target Price
120
Upside 30%
Change from
Previous
-21%
Market DataBSE Code 522287
NSE Symbol
52wk Range
H/L
64/105
Mkt Capital
(Rs Crores)
1201
Average Daily
Volume (Nos.)
48500 JMC Projects EBITDA margins improve to 5.1%, PAT up 75.6% yoy to Rs.31.4mn:
Nifty 6002
1M 1yr YTD
Absolute -18 -25 -11
Rel. to Nifty (13) (24) (17) Standalone Performance for nine months ended Dec 2013
3QFY14 2QFY14 1QFY14
Promoters 59 59 58
FII 9.7 9.9 10.9
DII 23.2 23.4 23.2
Others 7.6 7.3 7.8
Financials Rs, Crore
3QFY14 2QFY14 (QoQ)-% 3QFY13 (YoY)-%
Revenue 1051.3 962.2 9.3 889.7 18.2
EBITDA 94.0 91.1 3.2 88.6 6.2
PAT 33.7 31.0 8.7 35.1 -4.1
EBITDA Margin 8.9% 9.5% (60) bps 10.0% 110 bps
PAT Margin 3.2% 3.2% 0 bps 3.9% (70) bps
(Standalone)
12
(Source: Company/Eastwind)
Please refer to the Disclaimers at the end of this Report.
1 yr Forward P/B
Share Holding Pattern-%
Kalpataru Power Transmission reported a 26% growth in standalone net sales to Rs 2903.14 crore
for the nine months ended Dec'13 period. The growth was driven by Transmission business,
which constitute about 94% of total sales and was up by 33% YoY to Rs 2720.41 crore.
Infrastructure segment comprising of Railways and Pipeline execution reported a 36% fall in net
sales to Rs 138.48 crore largely due to lower execution and excessive rainfall in Eastern region of
the country. Other segment comprising of Biogas reported a 13% growth in net sales to Rs 44.25
crore.
OPM was down by 30 bps to 9.5%. While there was a better execution of Transmission sector
business including higher execution of export orders having better margins, continued losses in
Infrastructure segment resulted in fall in OPM The PBIT of Transmission business stood at Rs
259.25 crore with PBIT margin of about 9.5%, improvement of 60 bps YoY, where as
Infrastructure business reported loss of about Rs 36.48 crore as compared to profit of Rs 5.45
crore for nine months ended Dec'12 period. The Other segment PBIT was stood at Rs 3.49 crore
as compared to Rs 0.47 crore for nine months ended Dec'12 period. Thus overall OP was up by
23% to Rs 277.15 crore.
Other income was up by 10% to Rs 37.80 crore. Interest was up by about 24% to Rs 114.26 crore
and depreciation was up by 35% to Rs 51.33 crore, after which the PBT was up by 16% to Rs
149.36 crore. After providing total tax of Rs 50 crore, up by 25% YoY, standalone PAT for nine
Kalpataru Power Transmission reported a 18% growth in standalone net sales to Rs 1051.34
crore. The growth was driven by Transmission business, which constitute about 96% of total
sales and was up by 25% YoY to Rs 1007.22 crore. Infrastructure segment comprising of
Railways and Pipeline execution reported a 61% fall in net sales to Rs 28.05 crore largely due to
lower execution and excessive rainfall in Eastern region of the country. Other segment
comprising of Biogas reported a 6% growth in net sales to Rs 16.07 crore. OPM was down by
110 bps to 8.9%. While there was a better execution of Transmission sector business including
higher execution of export orders having better margins, continued losses in Infrastructure
segment resulted in fall in OPM. The PBIT of Transmission business stood at Rs 89.51 crore
with PBIT margin of about 9%, where as Infrastructure business reported loss of about Rs 15.23
crore as compared to profit of Rs 5 lakh for Dec'12 quarter. The Other segment PBIT was down
by 11% to Rs 1.80 crore. Thus overall OP was up by 6% to Rs 94.04 crore.
"Missed one……."
KALPATPOWR
Buy
Stock Performance-%
Standalone PAT grew by 75.1% yoy to Rs.58.3mn upon 8.8% yoy growth in income from
operations to Rs.6651mn, better than our PAT and revenue estimates of Rs.32.1 and Rs.6426mn.
Robust execution of better margin factories and buildings orders and cost optimization
measures,led 40 bps yoy increase in EBITDA margins to5.1%,
"Buy"4th Feb' 14
Narnolia Securities Ltd,
13
Consolidated order book as end of Dec 2013 was above Rs 12500 crore and of which KPTL's was Rs
7000 crore and that of JMC Project's was Rs 5500 crore. JMC received new order worth Rs 880
crore in Q3 FY'14. About 54% of order book of Transmission business was from international
markets. About 50% of order book is from Government contracts in JMC Projects and rests are
private.
At CMP of Rs.75.6, KPTL tradesat 7.6x FY14 EPS and 5.5x FY15 EPS. To factor in robust revenue
growth, we revise revenue estimates for FY14/FY15 by 5.1%/1.0% respectively. On account of
continued losses and low margin orders in the infrastructure segment we revise standalone
EBIDTA margins as well to 9.7% for FY14 and 10.0% for FY15. Hence, we maintain "Buy"rating
with target price at Rs.95/share.
Outlook:
Kalpatru Power Transmission.
Concall Highlights:
Please refer to the Disclaimers at the end of this Report.
Healthy order book:
• PGCIL has changed its model on bidding as PGCIL itself needs to be now competitive for winning
future bids. Competition continues to remain as it is, although everybody has become cautious.
Management expects good orders from PGCIL in Mar'14 quarter, which is the normal trend.
• Infrastructure segment comprising of railways and pipelines continue to report losses due to
lower execution, delays for some projects due to ROW issues and high and extended rainfall in
Eastern region of India, where the company has maximum orders.
• Infrastructure business has an order book of around Rs 420 crore of which 80% are legacy
orders. Management expects legacy orders to end by 2 more quarters after which better margins
and better results within the sector will come in. Railways are not making any money and it's been
very disappointing with not much to bid in and legacy orders hurting the margins.
• About 50% of order book is from Government contracts in JMC Projects and rests are private. Q4
will see some more margin improvement due to better execution. Margin improvement of about
50-75 bps will continue in FY'15 for JMC Projects.
• Overall, the management expects to end the year with a 20% net sales growth for FY'14 for KPTL
and about 15% for FY'15. Margins will hover around 10-10.5% for transmission business segment.
• Company has standalone debt of abut Rs 650 crore which it expects to bring down by about Rs
100 crore by end of FY'14. Average interest costs is about 10.5%. Consolidated debt is about Rs
2600 crore.
Narnolia Securities Ltd,
14
Cost as a % of sales (Q-o-Q) :
(Source: Company/Eastwind)
Please refer to the Disclaimers at the end of this Report.
INR in crores (Source: Company/Eastwind)
Cost % of revenue :
Kalpatru Power Transmission.
Margin % (Q-o-Q) :
Standalone, INR in crores (Source: Company/Eastwind)
Standalone, INR in crores (Source: Company/Eastwind)
Revenue (Q-o-Q) :
Story in graphs :T&D Revenue (INR) & T&D EBIT (%) (Q-o-Q) :
(Source: Company/Eastwind)
Narnolia Securities Ltd,
15
Kalpatru Power Transmission.
Key financials :
(Figures in crore)
Ammount in crores (Source: Company/Eastwind)
Please refer to the Disclaimers at the end of this Report.
(Source: Eastwind Research)
INR in crores (Source: Company/Eastwind)
Narnolia Securities Ltd,
PARTICULAR 2009A 2010A 2011A 2012A 2013A 2014E 2015E
Performance
Revenue 3246 4032 4363 5308 6085 7210 8166
Other Income 35 25 31 33 36 30 30
Total Income 3281 4057 4394 5341 6121 7240 8196
EBITDA 329 448 464 500 475 584 692
EBIT 272 373 376 402 352 445 525
DEPRICIATION 58 75 88 99 122 139 167
INTREST COST 137 126 117 158 194 263 263
PBT 170 272 291 277 194 212 293
TAX 42 69 79 73 60 65 90
Reported PAT 128 203 211 204 135 147 203
Dividend 23 23 27 27 27 27 27
EPS 9.7 15.3 13.8 13.3 8.8 9.6 13.2
DPS 1.7 1.7 1.7 1.7 1.7 1.7 1.7
Yeild %
EBITDA % 10.1% 11.1% 10.6% 9.4% 7.8% 8.1% 8.5%
NPM % 3.9% 5.0% 4.8% 3.8% 2.2% 2.0% 2.5%
Earning Yeild % 14.6% 7.3% 11.4% 12.3% 10.6% 13.1% 18.0%
Dividend Yeild % 2.6% 0.8% 1.4% 1.6% 2.1% 2.4% 2.4%
ROE % 14.7% 19.7% 12.9% 11.0% 6.9% 7.1% 9.0%
ROCE% 7.1% 10.5% 8.5% 6.5% 3.7% 3.2% 4.3%
Position
Net Worth 870 1027 1645 1851 1947 2068 2244
Total Debt 945 901 831 1281 1669 2500 2500
Capital Employed 1815 1929 2476 3133 3616 4568 4744
No of Share 13 13 15 15 15 15 15
CMP 66 210 121 108 83 73 73
Valuation
Book Value 65.6 77.5 107.2 120.7 126.9 134.8 146.2
P/B 1.0 2.7 1.1 0.9 0.7 0.5 0.5
Int/Coverage 2.0 3.0 3.2 2.5 1.8 1.7 2.0
P/E 6.8 13.7 8.8 8.1 9.4 7.6 5.5
Godrej Consumer Product
722
960
725
33%
32%
1M 1yr YTD
Absolute -13.8 1.5 5.4
Rel. to Nifty -10.3 1.4 0.6
Current 2QFY14 1QFY14
Promoters 63.3 63.3 63.3
FII 28.9 28.7 28.3
DII 1.4 1.2 1.2
Others 6.5 6.8 7.2
Financials Rs, Cr
3QFY14 2QFY14 (QoQ)-% 3QFY13 (YoY)-%
Revenue 1982.3 1961.7 1.1% 1695.6 16.9%
EBITDA 311.1 299.8 3.8% 284.9 9.2%
PAT 196 195 0.5% 172.2 13.8%
EBITDA Margin 15.7% 15.3% 210bps 16.8% (30bps)
PAT Margin 9.9% 9.9% 220bps 10.2% (10bps)16
Market Data
Mkt Capital (Rs Cr)
View and Valuations: Its strong 20%+ growth in the domestic household insecticides
business is the key growth driver. We expect strong momentum to continue in its
international business led by Megasari and consolidation of Darling business. Despite
some concerns related to higher leverage, lost domestic focus, macro uncertainties in
Africa and LatAM, and currency risk, we remain confident of achieving the 20%+ sales
growth with strong PAT growth for FY14E & beyond. At a CMP of Rs722, stock trades
at 5.1x FY15E P/BV. We retain BUY with a price target of Rs 960.
Its strong focus on driving growth in the domestic and international market by
expansion of products and distribution reach, we expect strong earning in near
future. With launching new products in domestic as well as international mkt, Godrej
CP will explore organic & inorganic growth. Along with its 3x3 strategy, it has 10x10
strategy also, which refers to 10x growth in 10 yrs.
Margin decline: The Company has been able to maintain its margin more than 15%
mark. EBITDA margin declined 110bps (YoY) to 15.7%, due to rise in A&P cost by 80 bps
to 11.5%. However, there was decline in RM cost by 500 bps to 38.8% of adjusted net
sales.
On Category wise: During the Quarter, Household insecticides grew by +8%, adversely
impacted by abnormal seasonal slowdown. Both the key brands Hit and Good knight
continue to gain share and strengthen market leadership positions across all formats.
Soap sales growth was +6%, volume growth at +4%, ahead of the category growth, but
down in value and volume term. Strong momentum in hair colours was maintained,
delivering sales growth at +37%. Liquid detergents grew 36%.
Geography wise performance: For 3QFY14, Business from India grew by 18% and
contributed 53% of total revenue, Indonesia grew by +18% and contributed 17% of total
revenue, Africa grew by 29% and contributed 15% of total revenue, Latin America grew
by 15% and contributed 8% of total revenue and Europe’s business continued strong
sales performance on both organic and Soft & Gentle (S&G) product portfolio. Business
reported growth of 124%.
Products strategy: The company continues to gain and enjoy market leader ship position
across all three formats. The company is driving increase in penetration with launch of
"Goodknight Advanced colour play".
Recent developments: The Company has entered into an agreement on Oct 7, 2013, to
acquire a 30% stake in Bhabani Blunt Hair Dressing Pvt Ltd, a premier hair salon
company with one of the strongest consumer franchises in this space.
For 3QFY14, Godrej CP revealed inline set of numbers with 17% sales growth led by
18% domestic and 25% international sales growth, reported growth across all
geographies and segments, respectively. PAT grew by 14% on YoY basis.
" Strategy Shining"
CMP
Upside
Almost inline set of numbers;
Target Price
Result update BUY
Previous Target Price
Change from Previous
1 yr Forward P/B
Share Holding Pattern-%
120012
Nifty 6002
24573
977/672
BSE Code 532424
NSE Symbol GODREJCP
Please refer to the Disclaimers at the end of this Report.
Stock Performance
52wk Range H/L
Average Daily Volume
"BUY"4th Feb' 14
Narnolia Securities Ltd,
17
Godrej Consumer Product
It expects expansion in gross margin,
which will help it to fund new product
launches.
Margin-%
(Source: Company/Eastwind)
India branded business grows 17%,
ahead of the market growth across core
categories.
Please refer to the Disclaimers at the end of this Report.
Sales and its Growth(%)
(Source: Company/Eastwind)
(Source: Company/Eastwind)
(Source: Company/Eastwind)
Region-wise EBITDA Margin
Domestic and Export sales-(% of Sales)
Narnolia Securities Ltd,
Regions 2QFY12 3QFY12 4QFY12 1QFY13 2QFY13 3QFY13 4QFY13 1QFY14 2QFY14 3QFY142
India 18.9% 20.4% 20.2% 15.1% 17.6% 18% 16.7% 15.8% 18.9% 18.5%
Indonesia 19.4% 20.6% 20.7% 18% 19% 20% 19% 15% 17% 16.0%
Africa 26.0% 31% 19.3% 19% 16% 20% 7% 13% 14% 18.0%
Latin America 7.4% 9% 16.3% 3% 4% 8% 9% 3% 7% 9.0%
Europe 11% 5% 10.5% 13% 9% 5% 13% 9% 10% 6.0%
18
Please refer to the Disclaimers at the end of this Report.
Financials and Valuation
(Source: Company/Eastwind)
Godrej Consumer Product
(4)The company will continue investing judiciously for the longer term to improve
position, create competitive advantage and emerge stronger than before.
(5) They are not seeing any major impact on Argentina or Africa revenue, because of
economic uncertainties,
Key facts from Conference call (attended on 3rd Feb 2014);
(1) The management stated that the company is continue to be aggressive in launching
new innovations that have been well accepted by consumers. They are backing new
launches with strong investments.
(2) More focusing on Innovative pipeline and Brand equity to maintain its market share
across brands,They will launch a new product next week, but they did not tell the
segment name.
(3) Q4 will be better quarter for household segments.
Narnolia Securities Ltd,
Rs in Cr, FY10 FY11 FY12 FY13 FY14E FY15E
Sales 2041.2 3693.6 4866.16 6390.79 7701.26 9053.82
Other Operating Income 2.5 28.11 45.93 16.58 15.40 18.11
Total income from operations 2043.7 3721.71 4912.09 6407.37 7716.66 9071.93
RM Cost 619.59 1458.28 2174.67 2640.31 3028.79 3719.49
Purchases of stock-in-trade 367.16 294.12 356.11 451.03 559.46 657.71
WIP -40.45 -45.22 -212.26 -118.06 -23.15 -90.72
Employee Cost 151.81 284.51 391.91 590.68 733.08 907.19
Ad Spend 132.8 352.85 449.86 660.35 887.42 997.91
Other expenses 402.98 695.96 850.47 1196.46 1311.8 1587.6
Total expenses 1633.89 3040.5 4010.76 5420.77 6497.4 7779.2
EBITDA 409.81 681.21 901.33 986.6 1219.2 1292.7
Depreciation and Amortisation 23.6 49.92 64.44 77 92.7 100.4
Other Income 44.81 24.13 6.07 67.78 57.9 90.7
Exceptional Item 0 41.14 200.17 96.12 38.6 45.4
EBIT 386.21 631.29 836.89 909.6 1126.5 1192.3
Interest 11.1 43.64 65.84 77.45 87.7 78.7
PBT 419.92 652.92 977.29 996.05 1135.3 1249.7
Tax Exp 80.33 138.21 226.05 179.18 204.35 249.94
PAT 339.59 514.71 751.24 816.87 930.9 999.8
Growth-% (YoY)
Sales 46.3% 81.0% 31.7% 31.3% 20.5% 17.6%
EBITDA 95.2% 66.2% 32.3% 9.5% 23.6% 6.0%
PAT 97.0% 51.6% 46.0% 8.7% 14.0% 7.4%
Expenses on Sales-%
RM Cost 30.3% 39.2% 44.3% 41.2% 39.3% 41.0%
Ad Spend 6.5% 9.5% 9.2% 10.3% 11.5% 11.0%
Employee Cost 7.4% 7.6% 8.0% 9.2% 9.5% 10.0%
Other expenses 19.7% 18.7% 17.3% 18.7% 17.0% 17.5%
Tax rate 19.1% 21.2% 23.1% 18.0% 18.0% 20.0%
Margin-%
EBITDA 20.1% 18.3% 18.3% 15.4% 15.8% 14.3%
EBIT 18.9% 17.0% 17.0% 14.2% 14.6% 13.1%
PAT 16.6% 13.8% 15.3% 12.7% 12.1% 11.0%
Valuation:
CMP 261 365 559 836 722.0 722.0
No of Share 30.8 32.4 34 34.03 34.03 34.03
NW 954.7 1725.2 2815.2 3313.0 4044.9 4845.6
EPS 11.0 15.9 22.1 24.0 27.4 29.4
BVPS 31.0 53.2 82.8 97.4 118.9 142.4
RoE-% 35.6% 29.8% 26.7% 24.7% 23.0% 20.6%
Div- Payout-% 30.6% 38.3% 22.6% 23.0% 21.4% 19.9%
P/BV 8.4 6.9 6.8 8.6 6.1 5.1
P/E 23.7 23.0 25.3 34.8 26.4 24.6
Narnolia Securities Ltd402, 4th floor 7/ 1, Lords Sinha Road Kolkata 700071, Ph
033-32011233 Toll Free no : 1-800-345-4000
email: [email protected],
website : www.narnolia.com
Risk Disclosure & Disclaimer: This report/message is for the personal information of
the authorized recipient and does not construe to be any investment, legal or taxation
advice to you. Narnolia Securities Ltd. (Hereinafter referred as NSL) is not soliciting any
action based upon it. This report/message is not for public distribution and has been
furnished to you solely for your information and should not be reproduced or
redistributed to any other person in any from. The report/message is based upon publicly
available information, findings of our research wing “East wind” & information that we
consider reliable, but we do not represent that it is accurate or complete and we do not
provide any express or implied warranty of any kind, and also these are subject to change
without notice. The recipients of this report should rely on their own investigations,
should use their own judgment for taking any investment decisions keeping in mind that
past performance is not necessarily a guide to future performance & that the the value of
any investment or income are subject to market and other risks. Further it will be safe to
assume that NSL and /or its Group or associate Companies, their Directors, affiliates
and/or employees may have interests/ positions, financial or otherwise, individually or
otherwise in the recommended/mentioned securities/mutual funds/ model funds and
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