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You are here : IndiaNotes >> Research & Analysis >> Industries >> Paper >> Research

Firstcall are 'overweight' in this paper and paper products scrip

Firstcall India Equity | 18 Apr, 2016  | Follow Author | Add to my Favourites 
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SYNOPSIS


- TCPL Packaging Ltd is one of India’s largest manufacturers of folding cartons, and India’s largest standalone converter of paperboard.


- During Q3 FY16, the company’s net profit stood at Rs. 104.43 million against Rs. 91.26 million in the corresponding quarter ending of previous year, an increase of 14.43%.


- Revenue for the quarter rose by 15.24% to Rs. 1527.31 million as against Rs. 1325.30 million, when compared with the prior year period.


- EBITDA stood at Rs. 266.27 million as against Rs. 218.24 million in the corresponding period of the previous year, an increase of 22.01%.


- During the quarter, EBIDTA and PAT margins are stood at 17.43% and 6.84% respectively.


- During Q3 FY16, PBT up by 19.03% to Rs. 143.62 million from Rs. 120.66 million in Q3 FY15.


- EPS of the company stood at Rs. 12.00 a share during the quarter, as against Rs. 10.49 per share over previous year period.


- Revenue was Rs. 4348.64 million for 9M FY16 as compared to Rs. 3688.81 million in the 9M FY15, an increase of 17.89%.


- Net profit stood at Rs. 288.62 million for 9M FY16 as compared to Rs. 235.10 million in 9M FY15, an increase of 22.77%.


- Net Sales and PAT of the company are expected to grow at a CAGR of 16% and 35% over 2014 to 2017E respectively.


OUTLOOK AND CONCLUSION


- At the current market price of Rs.534.00, the stock P/E ratio is at 11.91 x F Y16E and 10.41 X FY17E respectively.


- Earning per share (EPS) of the company for the earnings for F Y16E and F Y17E is seen at Rs. 44.85 and Rs. 51.30 respectively.


- Net Sales and PAT of the company are expected to grow at a CAGR of 16% and 35% over 2014 to 2017B, respectively.


- On the basis of EV/EBITDA, the stock trades at 6.36 x for F Y16E and 5.71 X for FY17E.


- Price to Book Value of the stock is expected to be at 3.04 x and 2.35 x for FY16E and FY17E 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.


For more information please write in to [email protected]

 

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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