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This company holds long-standing track record of consistent dividends; Overweight

Firstcall India Equity | 13 Jun, 2016  | Follow Author | Add to my Favourites 
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OUTLOOK AND CONCLUSION


- At the current market price of Rs.319.00, the stock P/E ratio is at 22.00 X F Y17E and 20.08 X FY18E respectively.


- Earning per share (EPS) of the company for the earnings for FY17E and FY18E is seen at Rs. 14.50 and Rs. 15.89 respectively.


- Net Sales and PAT of the company are expected to grow at a CAGR of 8% and 13% over 2015 to 2018B respectively.


- On the basis of EV/EBITDA, the stock trades at 10.63 X for FY17E and 9.71 X for FY18E.


- Price to Book Value of the stock is expected to be at 2.90 X and 2.62 X for FY17E and FY18E respectively.


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


SYNOPSIS


- GMM Pfaudler Ltd (GMMP) is a leading supplier of process equipment to the pharmaceutical and chemical industries.


- Revenue for the quarter stood at Rs. 596.53 mn as against Rs. 599.46 mn, when compared with the prior year period.


- During the quarter, EBIDTA is Rs. 107.09 mn as against Rs. 83.15 mn in the corresponding period of the previous year, an increase of 28.79%.


- EBITDA Margin at 17.95% for Q4 FY16 as against 13.87% in Q4 FY15.


- During Q4 FY16, Profit before tax stood at Rs. 87.75 mn against Rs. 62.62 mn in Q4 FY15, up by 40.13%.


- During Q4 F Y16, net profit increased by 43.44% to Rs. 57.85 mn from Rs. 40.33 mn in Q4 FY15.


- EPS of the company stood at Rs. 3.96 during the quarter, as against Rs. 2.76 per share over previous year period.


- GMM Pfaudler Ltd has approved the Final Dividend Rs. 0.90 per share on face value of Rs. 2/- each for the year 2015-16.


- During the F Y2015-16, Total Operating revenue was Rs. 2296.01 mn as compared to Rs. 2240.09 mn in FY15, a marginal growth of 2%.


- Profit after taxes stood at Rs. 183.58 mn for FY16 as compared to a profit of Rs. 172.03 mn in FY15, an increase of 6.7%.


- Net Sales and PAT of the company are expected to grow at a CAGR of 8% and 13% over 2015 to 2018E 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 editor@indianotes.com

 

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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