Motilal Oswal's research report on Sintex IndustriesWe believe the best is yet to come for the company, but broad-based recovery cycle in B2G projects remains elusive. Spinning project, despite being economically incentivized, might disappoint in a scenario of weakening cotton price. We expect gradual moderation in gearing from FY17. We keep our EBITDA estimates intact, but raise FY16 EPS by 22% (FY17 intact) due to deferment of interest and depreciation from spinning from FY16 to FY17 (will be capitalized in FY16, as guided by the management). The stock trades at an attractive 6x FY17E EPS and 4.8x FY17E EV/EBITDA. Buy with a target price of INR145 (6x FY17E EV/EBITDA). 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.
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