Khambatta Securities' research report on Vishwaraj Sugar Industries
Vishwaraj Sugar Industries Limited (VSIL) reported robust revenue growth during the quarter. Revenue from operations stood at ₹ 133.3 crore (up 61.1% y-o-y and 30.0% q-o-q). ~66% of the total revenues were contributed by the Sugar segment, followed by Distillery at 25%. The revenue contribution of the Cogeneration segment declined to 6% vs 10% in 3Q FY21. EBITDA for 3Q FY22 was marginally up (+0.6% y-o-y) to ₹ 43.7 crore. The EBITDA margin declined to 32.8%, compared to 52.5% reported in the same quarter last year. Higher raw material cost and other manufacturing expenses led to the decline in EBITDA margin. The net profit stood at ₹ 29.4 crore in 3Q FY22, a y-o-y decline of 3.4%. On a sequential basis, net profit witnessed multiple-times growth (₹ 19 lakh in 2QFY22).
VSIL stock currently trades at forward P/E level of 15.8x FY24E EPS. As we extend our forecast period to FY24 from FY23, we adjust our target P/E (35x to 28x) to reflect the farther-out earnings projections as the basis of our valuation. At 28x FY24E EPS, we rate VSIL a BUY with a price target of Rs 43 and an upside potential of 77%.
At 16:00 hrs Vishwaraj Sugar Industries was quoting at Rs 25.05, up Rs 0.95, or 3.94 percent.
It has touched an intraday high of Rs 25.15 and an intraday low of Rs 23.90.
It was trading with volumes of 2,196,269 shares, compared to its thirty day average of 1,189,665 shares, an increase of 84.61 percent.
In the previous trading session, the share closed down 3.60 percent or Rs 0.90 at Rs 24.10.
The share touched its 52-week high Rs 45.90 and 52-week low Rs 21.04 on 22 October, 2021 and 27 April, 2021, respectively.
Currently, it is trading 45.42 percent below its 52-week high and 19.06 percent above its 52-week low.
Market capitalisation stands at Rs 470.39 crore.For all recommendations report, click here
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