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

Pokarna Q2FY17: Firstcall are overweight for medium to long term investment

Firstcall India Equity | 18 Jan, 2017  | Follow Author | Add to my Favourites 
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SYNOPSIS

  • Pokarna Ltd is one of the largest exporters of Quartrz surfaces in India with exports to more than 50 countries (incl. Granite & Quartrz) Globally.
  • The company has achieved a turnover of Rs.973.16 mn for Q2 FY17 as against Rs. 986.03 mn in Q2 FY16.
  • During the quarter, net profit increased by 44.67% to Rs. 188.71 mn from Rs. 130.44 mn in the corresponding quarter ending of previous year.
  • EBITDA for the quarter stood as Rs. 380.88 mn higher by 16.38% as compared to corresponding period of the previous year.
  • During the quarter, PBT increased by 33.85% to Rs. 243.21 mn from Rs. 181.70 mn in the corresponding period of the previous year.
  • EPS of the company stood at Rs. 30.43 in Q2 FY17 against Rs. 21.04 in the corresponding quarter of the previous year.
  • Pokarna Ltd has announced that Pokarna Engineered Stone Ltd, the wholly owned subsidiary, has partnered IKEA India, to serve as its exclusive quartz surfaces supply and installation partner.
  • Pokarna Engineered Stone Ltd is planning to expand its quartz surfaces production capacity by 130% with investment of Rs. 325 crore in Greenfield facility.
  • Net Sales and Operating Profit of the company are expected to grow at a CAGR of 18% and 35% over 2015 to 2018E, respectively.


OUTLOOK AND CONCLUSION

  • At the current market price of Rs. 1129.30, the stock P/E ratio is at 9.90 x FY17E and 8.71 x FY18E respectively.
  • Earning per share (EPS) of the company for the earnings for FY17E and FY18E is seen at Rs. 114.07 and Rs. 129.64 respectively.
  • Net Sales and Operating Profit of the company are expected to grow at a CAGR of 18% and 35% over 2015 to 2018E, respectively.
  • On the basis of EV/EBITDA, the stock trades at 6.20 x for FY17E and 5.55 x for FY18E.
  • Price to Book Value of the stock is expected to be at 4.63 x and 3.47 x for FY17E and FY18E.
  • 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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