KR Choksey's research report on Alkyl Amines Chemicals
Net Income for Q2FY18 came in at INR 1381 mn as against INR 1241 mn for Q2FY17 and INR 1474 mn for Q1FY18; which grew by 11.3% y-o-y but de-grew by 6.3% q-o-q. EBIDTA during the quarter stood at INR 241 mn; up by 20.7% y-o-y and 3.8% q-o-q, while EBITDA margins surged to 17.5%. Operating margins increased by 135 bps y-o-y and 170 bps q-o-q assisted by margin lucrative product mix.
Outlook
We maintain our “BUY” rating on the stock with target price of INR 762 assigning a P/E of 15x on FY20E EPS of 50.8 resulting into an upside of 31.5%.For all recommendations report, click here
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