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Sep 02, 2011, 07.07 PM IST
CRISIL Research has come out with its report on Jasch Industries. The research firm has maintained a fundamental grade of 2/5, valuation grade of 3/5 on the company and assigned the fair value of Rs 16.6 per share in its August 31, 2011 report.
CRISIL Research has come out with its report on Jasch Industries . The research firm has maintained a fundamental grade of 2/5, valuation grade of 3/5 on the company and assigned the fair value of Rs 16.6 per share in its August 31, 2011 report.
“Jasch Industries Ltd’s (Jasch’s) Q1FY12 revenues were in line with CRISIL Research’s expectations but EBITDA margin was higher than expected. Improvement in margin was on account of higher contribution from the relatively better margin electronic gauge segment; on the back of execution of the Arcelor Mittal order. The company’s board has recommended its first ever dividend of Re 1 per share. We maintain the fundamental grade of 2/5.”
“Q1FY12 revenues grew by 12% y-o-y but declined by 13% q-o-q to Rs 198 mn. The EGS segment’s revenue increased 92% y-o-y on account of the completion of Arcelor Mittal’s US$1.1mn order. The PU/PVC segment’s revenues decreased by 8% y-o-y and 15% q-o-q due to lower demand. EBITDA margin improved 324 bps y-o-y to 13.0% due to better revenue mix and improvement in margins in both EGS and PU/PVC segments. EBIT margin increased by 354 bps and 46 bps y-o-y for the EGS and PU/PVC segments, respectively. Margin improvement in the EGS segment was due to higher share of better margin export sales due to execution of the Arcelor Mittal order. Margin improvement in the PU/PVC segment came from modernisation of the DMF recovery plant. PAT margin grew by 228 bps y-o-y and 82 bps q-o-q to 5.8% due to improved operating performance and lower effective tax. PAT increased by 85% y-o-y and 1% q-o-q to Rs 11.4 mn. Jasch reported an EPS of Rs 1.01 for Q1FY12 as compared to Re 1 in Q4FY11 and Rs 0.54 in Q1FY11. The company’s board has recommended its first ever dividend of Re 1 per share, yielding 5.6% on the current share price.”
“Jasch’s margin improvement in both the segments was higher than our expectations. The company reported EBITDA margin of 13% against our annual projection of 10.8%. Consequently, we have increased our EBITDA margin estimates. For FY12 and FY13, EBITDA margin estimates have been increased by 28 bps and 16 bps to 11.1% and 11.3%, respectively. We continue to use the discounted cash flow method to value Jasch. After factoring in the change in our margin estimates, our fair value has increased to Rs 16.6 per share from Rs 15.8 per share,” says CRISIL Research report.
Disclaimer: This report (Report) has been commissioned by the Company/Investor/Exchange and prepared by CRISIL. The report is based on data publicly available or from sources considered reliable by CRISIL (Data). However, CRISIL does not guarantee the accuracy, adequacy or completeness of the Data / Report and is not responsible for any errors or omissions or for the results obtained from the use of Data / Report. Opinions expressed herein are CRISIL's opinions as on the date of this Report. The Data / Report are subject to change without any prior notice. Nothing in this Report constitutes investment, legal, accounting or tax advice or any solicitation, whatsoever. The Report is not a recommendation to buy / sell or hold any securities of the Company. CRISIL especially states that it has no financial liability, whatsoever, to the subscribers / users of this Report. This Report is for the personal information of the authorized recipient only. This Report should not be reproduced or redistributed or communicated directly or indirectly in any form to any other person or published or copied in whole or in part especially outside India, for any purpose.
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