Buy Filatex India; target of Rs 52: KR Choksey

KR Choksey's research report on Filatex India

Filatex India Limited (FIL) reported revenue of INR 10,468mn, a degrowth of -2.2% QoQ/-4.0% YoY in Q4FY23. EBITDA de-grew by 54.0% YoY and increased by 50.7% QoQ to INR 670mn. EBIDTA margin contracted by 696 bps YoY and improved by 225 bps QoQ at 6.4%. Net Profit de-grew by 76.3% YoY and improve by 579.2 % QoQ to INR 186mn. Production volume for the quarter stood at 97,610 MT, compared to 88,268 MT YoY, while sales volume for the quarter was 97,390 MT as against 92,509 MT YoY.

Outlook

We continue with a “BUY” rating on the stock with a target price of INR 52 assigning a P/E multiple of 7x on FY25E EPS of INR 7.4.

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