CMI - Robust quarter ending with strong order book; but, receivables and inventory are monitorables: CRISIL

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26 Aug, 2025 12:21

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CRISIL's research report on CMI

 
CMI Ltd’s Q4FY17 consolidated revenue was above CRISIL Research’s expectations. Revenue increased 89.3% y-o-y and 78.4% q-o-q to Rs 1,358 mn, aided by demonetisation-impacted deliveries being executed in Q4. Revenue increased 58.3% to Rs 3,827 mn in FY17 owing to ramp-up of operations in the Baddi facility. EBITDA margin expanded 296 bps y-o-y and 226 bps q-o-q to 16.1% in Q4FY17 following strong growth in operating income. EBITDA margin remained stable y-o-y at 13.9% despite start-up cost incurred for the Baddi plant and sharp increase in employee cost. Consequent to growth in revenue, adjusted PAT increased 53% y-o-y to Rs 235 mn in Q3FY17. Given strong growth opportunities, especially after the acquisition of the Baddi plant, coupled with capable management, we maintain our fundamental grade of 3/5.

We have increased our earnings estimates owing to higher-than-expected earnings of the company in FY17. We value CMI by the discounted cash flow (DCF) method and raise our fair value to Rs 259. At the current market price of Rs 210, our valuation grade is 3/5.

 Disclaimer: This report (Report) has been commissioned by the Company/Investor/Exchange and prepared by CRISIL. The report is based on data publicly available or from sources considered reliable by CRISIL (Data). However, CRISIL does not guarantee the accuracy, adequacy or completeness of the Data / Report and is not responsible for any errors or omissions or for the results obtained from the use of Data / Report. Opinions expressed herein are CRISIL's opinions as on the date of this Report.  The Data / Report are subject to change without any prior notice. Nothing in this Report constitutes investment, legal, accounting or tax advice or any solicitation, whatsoever. The Report is not a recommendation to buy / sell or hold any securities of the Company. CRISIL especially states that it has no financial liability, whatsoever, to the subscribers / users of this Report. This Report is for the personal information of the authorized recipient only. This Report should not be reproduced or redistributed or communicated directly or indirectly in any form to any other person or published or copied in whole or in part especially outside India, for any purpose.

CRISIL Limited. All Rights Reserved. Published under permission from CRISIL"

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