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Feb 15, 2012, 05.12 PM IST
CRISIL Research has come out with its report on Sanwaria Agro Oils. The research firm has maintained the fundamental grade of 2/5 to the company in its February 14, 2012 report.
CRISIL Research has come out with its report on Sanwaria Agro Oils . The research firm has maintained the fundamental grade of 2/5 to the company in its February 14, 2012 report.
Sanwaria Agro Oils Ltd’s (Sanwaria’s) Q3FY12 results were significantly below CRISIL Research’s expectations as the company posted 23% y-o-y decline in its top line for the quarter and saw its earnings halve compared to Q3FY11. We had expected the company’s performance to improve in Q3 led by palm oil trading revenues and some price recovery in soya oil market seen during December 2011. We are likely to lower our estimates post discussion with the management. We maintain the fundamental grade of 2/5.
Q3FY12 result analysis
• EBITDA margin contracted by 75 bps y-o-y to 2.9%, but increased sequentially. Raw material cost as a percentage of sales increased by 101 bps, which we believe is on account of lower realisations. Employee
• PAT margin declined by 63 bps y-o-y to 1.2%, whereas de-growth in absolute PAT was ~49%. EPS for the quarter was Rs 0.12
• For 9MFY12, Sanwaria reported EPS of Rs 0.36, 52% lower compared to 9MFY11. EPS was Rs 0.8 in FY11.
Valuation: Current market price has strong downside
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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