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You are here : IndiaNotes >> Research & Analysis >> Companies >> Voith Paper Fabrics India Ltd. >> Research

Voith Paper Fabrics India Q1FY18: Buy for medium to long term investment

Firstcall India Equity | 14 Sep, 2017  | Follow Author | Add to my Favourites 
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Voith Paper Fabrics India Limited is engaged in manufacturing of industrial felts which supplies a range of paper machine clothing (industrial felts) for pulp, paper and paperboard, and fiber-cement industries.


During Q1 FY18, Net Sales increased by 16.92% and stood at Rs. 247.78 million as compared to Rs. 211.92 million in the corresponding quarter ending of previous year.


Net profit for the quarter stood at Rs. 40.74 million from Rs. 39.79 million, when compared with the prior year period, an increase of 2.40%


During Q1 FY18, EBIDTA is Rs. 76.27 million as against Rs. 76.00 million in the corresponding period of the previous year.


The total income of the company has increased to Rs.268.97 million in Q1FY18 as compared to Rs.231.38 million in Q1 FY17.


EPS of the company stood at Rs. 9.27a share in Q4 FY17 against Rs. 9.06 in the corresponding quarter of the previous year.


On 12th August 2017, the company has taken decision to enhance the existing production capacity by about 30% over next four years.


OUTLOOK AND CONCLUSION


At the current market price of Rs.742.10, the stock P/E ratio is at 16.55 x FY18E and 14.91 x FY19E respectively.


Earning per share (EPS) of the company for the earnings for FY18E and FY19E is seen at Rs. 44.85 and Rs. 49.79
respectively.


Net sales and PAT of the company are expected to grow at a CAGR of 13% and 12% over 2017 to 2019E,
respectively.


On the basis of EV/EBITDA, the stock trades at 5.49 x for FY18E and 4.66 x for FY19E.


Price to Book Value of the stock is expected to be at 1.65 x and 1.50 x for FY18E and FY19E 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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