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Jun 26, 2012, 06.55 PM IST
CRISIL Research has come out with its report on Butterfly Gandhimathi Appliances. The research firm has maintained the fundamental grade of 3/5 to the company in its June 22, 2012 report.
CRISIL Research has come out with its report on Butterfly Gandhimathi Appliances . The research firm has maintained the fundamental grade of 3/5 to the company in its June 22, 2012 report.
Butterfly Gandhimathi Appliances Ltd’s (Gandhimathi’s) Q4FY12 results were below CRISIL Research’s expectations. While revenue of Rs 2,190 mn (+252% y-o-y) was in line, EBITDA margin of 4.9% was significantly below our expectations due to higher raw material costs and rupee depreciation. Q4FY12 raw material costs increased to 75% of sales from 60% of sales in Q3FY12. PAT of Rs 47 mn was below our expectations because of contraction in EBITDA margin. The company plans to pass on the increase in costs to customers by taking a 5% price hike. We maintain our fundamental grade of 3/5 as we believe that the company’s longterm fundamentals are intact.
Q4FY12 result update:
We maintain our FY13 and FY14 revenue estimates of Rs 6.7 bn and Rs 7.6 bn respectively. However, FY13/FY14 EBITDA margin estimates are lowered from 11.4% each to 10.4% and 10.9%, respectively, due to rupee depreciation. In Q1FY13, the rupee has depreciated by ~12% to 53.6/US$ from FY12 average of 48.1/US$. The FY13/FY14 EPS estimates are lowered from Rs 24.8 and Rs 28.8 to Rs 20.8 and Rs 25.8 respectively.
Valuations: Current market price has upside
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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Action in Butterfly Gandhimathi Appliances
May 24 2013, 16:42
- in Rupee
May 23 2013, 09:33
- in Technicals