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You are here : IndiaNotes >> Market Action >> Fundamental

Chemfab Alkalies Q3FY17: Firstcall are overweight for medium to long term investment

Firstcall India Equity | 25 Jan, 2017  | Follow Author | Add to my Favourites 
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SYNOPSIS

  • Chemfab Alkalis Limited manufactures and sells inorganic chemicals in India and internationally.
  • Revenue for the quarter rose by 27.79% to Rs. 305.80 mn from Rs. 239.30 mn, when compared with the prior year period.
  • During Q3 FY17, EBIDTA is Rs. 100.40 mn as against Rs. 61.80 mn in the corresponding period of the previous year, an increase of 62.46%.
  • During the quarter, net profit jumps to Rs. 56.30 mn from Rs. 13.30 mn in the corresponding quarter ending of previous year, an increase of 323.31%.
  • During Q3 FY17, Profit before tax grew 280.19% at Rs. 78.70 mn against Rs. 20.70 mn in Q3 FY16.
  • EPS of the company stood at Rs. 6.14 during the quarter, as against Rs. 1.45 per share over previous year period.
  • During nine months ended December 31, 2016, revenue stood at Rs. 925.50 mn as compared to Rs. 720.50 mn during the same period of previous year, up by 28.45%.
  • During 9M FY17, Net profit of the Company increased by 244.51% to Rs. 172.60 mn from Rs. 50.10 mn in 9M FY16.
  • Net Sales and PAT of the company are expected to grow at a CAGR of 10% and 38% over 2015 to 2018E respectively.


OUTLOOK AND CONCLUSION

  • At the current market price of Rs.300.75, the stock P/E ratio is at 12.02 x FY17E and 10.31 x FY18E respectively.
  • Earning per share (EPS) of the company for the earnings for FY17E and FY18E is seen at Rs. 25.03 and Rs. 29.18 respectively.
  • Net Sales and PAT of the company are expected to grow at a CAGR of 10% and 38% over 2015 to 2018E respectively.
  • On the basis of EV/EBITDA, the stock trades at 6.32 x for FY17E and 5.48 x for FY18E.
  • Price to Book Value of the stock is expected to be at 1.73 x and 1.51 x for FY17E and FY18E respectively.
  • Hence, we say that, we are Overweight in this particular scrip for Medium to Long term investment.

 


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About Firstcall India Equity

Firstcall India Equity of Firstcall India Equity Advisors Pvt. Limited (FIEA), is a leading financial services provider in India and a SEBI Registered Category-I Merchant Banker. FIEA is a culmination of a credible Equity Research Capabilities, Long Standing Relationship with leading FIIs, DFIs, MFs, Overseas Pension Funds etc. The company’s research caters to the needs of the largest news wire and media houses of the world namely Reuters, Thomson, Capital IQ, Themarkets.com, Emerging Markets Euro money Publications-UK. The Company is among the major players in the Debt and Equity markets.


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Disclaimer: The author has taken due care and caution to compile and analyse the data. The opinions expressed above are only the views of the author, and not a recommendation to buy or sell. Neither the author nor IndiaNotes.com accept any liability whatsoever arising from the use of any of the above contents.




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