Firstcall Research's report on Srikalahasthi Pipes
"Srikalahasthi Pipes’ net profit jumps to Rs 213.76 million against Rs. 88.27 million in the corresponding quarter ending of previous year, an increase of 142.17%. Revenue for the quarter increased by 19.96% to Rs. 3080.15 million from Rs. 2567.64 million, when compared with the prior year period. Reported earnings per share of the company stood at Rs. 5.38 a share during the quarter as against Rs. 2.22 over previous year period. Profit before interest, depreciation and tax is Rs. 510.76 million as against Rs. 343.11 million in the corresponding period of the previous year."
OUTLOOK AND CONCLUSION
At the current market price of Rs. 123.00, the stock P/E ratio is at 6.40 x FY15E and 5.01 x FY16E respectively.
Earnings per share (EPS) of the company for the earnings for FY15E and FY16E are seen at Rs. 19.21 and Rs. 24.55 respectively.
Net Sales and Operating Profit of the company are expected to grow at a CAGR of 11% and 52% over 2013 to 2016E respectively.
On the basis of EV/EBITDA, the stock trades at 4.85 x for FY15E and 4.11 x for FY16E.
Price to Book Value of the stock is expected to be at 1.71 x and 1.43 x respectively for FY15E and FY16E.
"We recommend ‘BUY’ in this particular scrip with a target price of Rs 140 for Medium to Long term investment", says Firstcall Research Report.
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