P-Sec maintains buy on BILT

P-Sec is bullish on BILT and has maintianed buy rating on the stock with a topline jump of 2.5% y-o-y in Q4 while at the bottomline it has seen a jump of 19.5% y-o-y .

P-Sec research report on BILT

The company has seen a topline jump of 2.5% y-o-y in Q4 while at the bottomline it has seen a jump of 19.5% y-o-y (Excl. extraordinary items). EBIDTA margins have seen a growth of 251 basis points on account of increase in paper prices. The company has announced restructuring plans under which it will transfer three undertakings to its subsidiary BILT Graphic Products (BGPPL) at a lump sum value of 1950 Cr. where on the subsidiary will issue equity shares of 450 Cr. and debentures of 1500Cr. Later on BILT will transfer holdings in BGPPL to its another subsidiary BILT Paper Holding (BPH), which currently holds 98% in sabah forest for 1950 Cr and the same will be raised by BPH through private equity placement and debt. The amount raised will be partly utilized for repayment of debt and buy back of equity shares . We maintain buy.