ICICIdirect.com's report on Sintex Industries
This quarter once again saw a good overall performance with healthy growth in revenues and profitability led by better performance from the prefab and custom moulding segments
Revenues during the quarter were up 32.7% YoY Rs 1826 crore (our estimate: Rs 1748.9 crore) led by growth of 28.3% and 37.2% YoY from the prefab and custom moulding (due to pick-up in automotive segment), respectively. On the other hand, monolithic segment reported 41.8% YoY drop in revenues. However, with additional revenue flow of Rs 147 crore from the EPC segment, the company managed to clock robust revenue growth during the quarter
The EBITDA margin for the quarter remained in line with our estimates at 16.8%. However, it declined 100 bps YoY due to lower margin from EPC (7%) and monolithic segment (14%)
On the other hand, lower tax rate on account of available tax credit of previous year’s net profit grew sharply by 92.9% YoY to Rs 162 crore (vs. I-direct estimate: Rs 135.3 crore)
"Given the robust outlook for prefab and spinning business coupled with improvement in the custom moulding business, we expect the growth momentum to continue with healthy margins. Hence, we revise our rating revise our target price upward to Rs 132/share as per our SOTP valuation and continue to maintain BUY rating on the stock", says ICICIdirect.com research report.
For all recommendations, click here
Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
