Buy Sintex Industries; target of Rs 94: Motilal Oswal

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26 Aug, 2025 12:21

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Motilal Oswal is bullish on Sintex Industries and has recommended buy rating on the stock with a target of Rs 94 in its January 10, 2013 research report.
 
“Sintex Industries' 3QFY13 results are above our estimates. Revenue grew 23% YoY to INR14.3b (v/s est INR12b), EBITDA was up 9.6% YoY at INR2.2b (v/s est INR1.9b), and EBITDA margin at 15.4% (v/s 15.3% in 2QFY13). Reported PAT disappointed at INR533m (v/s est of INR715m) on higher forex loss (INR450m), tax rates. Adj PAT grew 43% YoY to INR986m (v/s est INR895m). 3QFY13 Monolithic revenue grew 40% YoY to INR3.3b (v/s est INR2.3b) given project completion method of revenue booking. Better operating leverage augmented margin to 19% (+3pp both YoY and QoQ).”
 
“Prefab revenue grew 23% YoY to INR2.8b (v/s est INR2.3b), but margin was down at 17% (-3pp QoQ) due to revenue mix and some cost escalations. The segment has shown strong resilience due to Sintex's entry into (a) new market segment (retail), and (b) new geographies (Maharashtra and MP). Domestic composites revenue grew 15% YoY to INR2.6b (v/s est INR2.4b) on a low base owing to Maruti strike in 3QFY12. Overseas business, after 3 quarters of de-growth, posted sharp growth of 28% YoY to INR3.7b (v/s est INR2.8b). However, margin deteriorated to ~7% (v/s 9.5% in 2QFY13). The management has guided for redemption of old FCCBs by Mar-13. It targets to reduce net debt by ~INR3b in FY13 and augment RoCE by 3pp over next couple of years. We have upgraded FY13/14 Adj PAT by 5-6%. The stock trades at 5.1x FY14E and 4.4x FY15E EPS. Maintain Buy with a target price of INR94 (7x FY14E EPS),” says Motilal Oswal research report.

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