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You are here : IndiaNotes >> Research & Analysis >> Companies >> Emmbi Industries Ltd. >> Research

Emmbi Industries Q4FY17: Firstcall are overweight for medium to long term investment

Firstcall India Equity | 14 Jul, 2017  | Follow Author | Add to my Favourites 
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SYNOPSIS

  • Emmbi Industries Ltd is one of the region’s most well established brands in the field of woven polyethylene and polypropylene product manufacturing.
  • Revenue for the quarter rose by 12.69% to Rs. 668.04 million from Rs. 592.80 million in the corresponding quarter ending of previous year.
  • During Q4 FY17, the company’s net profit stood at Rs. 40.88 million against Rs. 37.05 million in the corresponding quarter ending of previous year.
  • For the Q4 FY17, EBITDA stood at Rs. 89.91 million as against Rs. 72.03 million in the corresponding period of the previous year.
  • During Q4 FY17, Profit before tax stood at Rs. 58.43 million against Rs. 41.70 million in Q4 FY16.
  • EPS of the company stood at Rs. 2.31 a share during the quarter, as against Rs. 2.09 per share over previous year period.
  • Emmbi Industries Ltd has recommended the payment of dividend @ Re. 0.50 per equity share (5%) of Rs. 10/- each for the financial year ended March 31, 2017.
  • During FY17, Net Sales increased by 10.72% to 2409.89 million from Rs. 2176.66 million in FY16.
  • During the year ended 31St March, 2017, PAT raised by 20.14% to Rs. 127.28 million from Rs. 105.94 million during previous year same period.
  • Net Sales and PAT of the company are expected to grow at a CAGR of 12% and 30% over 2016 to 2019E respectively.


OUTLOOK AND CONCLUSION

  • At the current market price of Rs. 189.15, the stock P/E ratio is at 22.81 x FY18E and 19.72 X FY19E respectively.
  • Earning per share (EPS) of the company for the earnings for FY18E and FY19E is seen at Rs. 8.29 and Rs. 9.59 respectively.
  • Net Sales and PAT of the company are expected to grow at a CAGR of 12% and 30% over 2016 to 2019E respectively.
  • On the basis of EV/EBITDA, the stock trades at 12.41 x for FY18E and 11.25 x for FY19E.
  • Price to Book Value of the stock is expected to be at 3.33 X and 2.85 x for FY18E and FY19E 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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