Dolat Capital has come with its June quarterly earning estimates for plastic sector. According to the research firm, the sector continues to look encouraging despite headwinds faced in terms of higher input cost on account of depreciating rupee.
We believe, plastic companies are likely to post healthy revenue growth on back of reasonable volume growth and higher realisations considering most companies (Supreme and Astral Poly in particular) have been able to pass on the higher input cost to certain extent.
Plastic Pack as whole is likely to witness contraction in margins on account of higher input cost and time lag to pass on the same.
We believe that Supreme continue to witness sustained growth led by strong growth expected in SILPAULIN and pipe segment, hence our preference out of the pack.
| Company Name | Sales (Rs Mn) | PAT (Rs Mn) | ||||
| Q1FY13E | QoQ(%) | YoY(%) | Q1FY13E | QoQ(%) | YoY(%) | |
| Supreme Ind | 8,800 | 16 | 20.1 | 725 | 32.6 | 20.3 |
| Sintex Ind | 9,500 | -6.4 | -14.4 | 366 | -59.8 | -60.8 |
| Time Techno | 4,150 | -3.1 | 19.6 | 275 | 49 | -3.4 |
| Astral Poly | 1,471 | -19.9 | 46.6 | 79.6 | -58.7 | 15.6 |
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