Buy Siyaram Silk Mills; target of Rs 410: ICICI Direct

ICICI Direct's research report on Siyaram Silk Mills

Revenues for Q4FY19 declined marginally by 1.4% YoY to Rs 587.6 crore. The market environment remained challenging with MBO’s facing glitches related to GST transition and tepid consumption demand. EBITDA
margins declined 148 bps YoY to 15.0% on account of increase in marketing spends and negative operating leverage. PAT declined 3% YoY to Rs 46.7 crore (Siyaram had reported an exceptional expense worth Rs 6 crore
in Q4FY18).

Outlook

Hence, we have a BUY recommendation with a revised target price of Rs 410 (13x FY21E EPS).