February 14, 2017 / 18:32 IST
MANB’s revenue grew 11.6% YoY to INR 1,025m (our estimate: INR989m). EBITDA margin expanded 70bp YoY to 20% (our estimate: 18.1%), driven by 460bp YoY dip in other expenses, but partly offset by 260bp YoY increase in raw material costs and 130bp YoY increase in employee expenses.
Outlook
We are confident that MANB is on the cusp of a high-growth cycle, led by its capacity expansion, new product launches and increase in distribution network, which should lead to market share gains from 5% in 2016 to 7.5% in 2018. We value the stock at 22x FY19E EPS; our target price of INR 843 implies 20% upside. We maintain our Buy rating.
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