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You are here : IndiaNotes >> Research & Analysis >> Industries >> Paints and Pigments >> Research

Firstcall recommend a maker of paints, coatings & specialty chemicals

Firstcall India Equity | 21 Mar, 2016  | Follow Author | Add to my Favourites 
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SYNOPSIS


- Akzo Nobel India manufactures and markets paints, coatings and specialty chemicals.


- For the Q3 FY16, Net sales rose by 8.89% y-o-y of Rs. 7480.70 million against Rs. 6870.20 million for the corresponding quarter of previous year.


- In Q3 FY16, Net profit jumps to Rs. 632.40 million an increase of 24.64% against Rs. 507.40 million in Q3 FY15.


- During the quarter, operating profit rose by 7.96% of Rs. 941.00 million as against Rs. 871.60 million in the corresponding period of the previous year.


- Profit before tax (PBT) at Rs. 902.40 million in Q3 FY16 compared to Rs. 740.00 million in Q3 FY15, registered a growth of 21.95%.


- In Q3 FY16, Other income rose by 26.11% y-o-y of Rs. 85.50 million as compared to Rs. 67.80 million in Q3 FY15.


- For nine months of FY16, the company registered a growth of 6.62% in Net sales to Rs. 20629.80 million from Rs. 19348.30 million for nine months ended of FY15.


- Net profit rose by 5.55% and stood at Rs 1495.30 million for the end of 9M FY16 from Rs 1416.70 million for the end of9M FY15.


- Net Sales of the company is expected to grow at a CAGR of 7% over 2014 to 2017E.


OUTLOOK AND CONCLUSION


- At the current market price of Rs. 1298.75, the stock P/E ratio is at 30.35 X FY16E and 27.74 X FY17E respectively.


- Earning per share (EPS) of the company for the earnings for FY16E and FY17E is seen at Rs.42.79 and Rs.46.82 respectively.


- Net Sales of the company is expected to grow at a CAGR of 7% over 2014 to 2017B.


- On the basis of EV/EBITDA, the stock trades at 16.74 X for FY16E and 15.06 x for FY17E.


- Price to Book Value ofthe stock is expected to be at 5.78 X and 5.14 X respectively for FY16E and FY17E.


- We recommend ‘BUY’ in this particular scrip with a target price of Rs.1420.00 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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