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Firstcall recommend a paper & paper-products scrip for medium-term investmens

Firstcall India Equity | 28 Mar, 2016  | Follow Author | Add to my Favourites 
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OUTLOOK AND CONCLUSION


- At the current market price of Rs. 247.00, the stock P/E ratio is at 14.20 x FY16E and 11.92 x F Y17E respectively.


- Earning per share (EPS) of the company for the earnings for F Y16E and FY17E is seen at Rs. 17.39 and Rs. 20.72 respectively.


- Net Sales and PAT of the company are expected to grow at a CAGR of 5% and 6% over 2014 to 2017E respectively.


- On the basis of EV/EBITDA, the stock trades at 6.29 x for F Y16E and 5.87 X for F Y17E.


- Price to Book Value of the stock is expected to be at 0.75 x and 0.71 x for F Y16E and F Y17E respectively.


- Hence, we say that, we are Overweight in this particular scrip for Medium term investment.


SYNOPSIS


- Seshasayee Paper and Boards Limited (SPB), the flagship company belonging to 'ESVIN GROUP', operates an integrated pulp, paper and paper board.


- During Q3 FY16, net profit jumps to Rs. 41.30 mn against Rs. 26.50 mn in the corresponding quarter ending of previous year, an increase of 55.85%.


- Revenue for the quarter stood to Rs. 2252.40 mn from Rs. 2595.70 mn, when compared with the prior year period.


- During Q3 FY16, EBIDTA is Rs. 216.10 mn as against Rs. 206.90 mn in the corresponding period of the previous year.


- EPS of the company stood at Rs. 3.28 a share during the quarter, registering 55.85% increase over previous year period.


- Revenue for the 9M FY16 stood to Rs. 6937.60 million from Rs. 7044.50 million, when compared with the prior year period.


- During 9M FY16, the company’s net profit stood at Rs. 167.10 million as against Rs. 145.50 million in 9M FY15, grew by 14.85%.


- For the December quarter of FY16, Other Income was at Rs. 9.50 million as compared to Rs. 2.00 million for December quarter of FY15.


- Net Sales and PAT of the company are expected to grow at a CAGR of 5% and 6% over 2014 to 2017E respectively.

 


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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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