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

GRP Ltd Q1FY17: Firstcall are overweight for medium to long term investment

Firstcall India Equity | 22 Aug, 2016  | Follow Author | Add to my Favourites 
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SYNOPSIS

  • GRP Limited is engaged mainly in Reclaim Rubber. Its other business includes Power generation from Windmill, Manufacturing of Thermo Plastic Elastomers and Punch & Split products.

  • The company achieved a turnover of Rs. 805.64 million for the 1St quarter of the FY 2016-17 as against Rs. 765.79 million in the corresponding quarter of the previous year, an increase of 5.20%.

  • During the quarter, net profit increased by 279.76% to Rs. 38.47 million from Rs. 10.13 million in the corresponding quarter ending of. previous year.

  • During the quarter, EBIDTA stood at Rs. 101.02 million as against Rs. 57.45 million in the corresponding period of the previous year, up by 75.84%.

  • During the quarter, PBT increased by 364.26% to Rs. 57.15 million from Rs. 12.31 million in the corresponding period of the previous year.

  • EPS of the company stood at Rs. 28.86 in Q1FY17 against Rs. 7.60 in the corresponding quarter of the previous year.

  • PAT of the company is expected to grow at a CAGR of 9% over 2015 to 2018E.

 

OUTLOOK AND CONCLUSION

  • At the current market price of Rs.1400.05, the stock P/E ratio is at 14.54 x FY17E and 12.04 X FY18E respectively.

  • Earning per share (EPS) of the company for the earnings for FY17E and FY18E is seen at Rs. 96.26 and Rs. 116.30 respectively.

  • PAT of the company is expected to grow at a CAGR of 9% over 2015 to 2018E.

  • On the basis of EV/EBITDA, the stock trades at 6.40 x for FY17E and 5.87 X for FY18E.

  • Price to Book Value of the stock is expected to be at 1.42 x and 1.27 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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