Agro Tech Foods Q3FY17: Firstcall are overweight for medium to long term investment

Firstcall India Equity | May 17, 2016, midnight


SYNOPSIS

  • Agro Tech Foods Ltd is engaged in the business of marketing food and food ingredients to consumers and institutional customers.
  • The company achieved a turnover of Rs. 2081.40 million for the 3rd quarter of the FY 2016-17 as against Rs. 2027.30 million in the corresponding quarter of the previous year, an increase of 2.67%.
  • During the quarter, net profit increased by 28.82% to Rs. 82.70 million from Rs. 64.20 million in the corresponding quarter ending of previous year.
  • During the quarter, EBIDTA stood at Rs. 177.10 million as against Rs. 155.80 million in the corresponding period of the previous year, up by 13.67%.
  • During the quarter, PBT increased by 31.26% to Rs. 124.70 million from Rs. 95.00 million in the corresponding period of the previous year.
  • EPS of the company stood at Rs. 3.39 in Q3 FY17 against Rs. 2.63 in the corresponding quarter of the previous year.
  • During the quarter, EBIDTA and PAT margins are stood at 9% and 4% respectively.


OUTLOOK AND CONCLUSION

  • At the current market price of Rs.499.60, the stock P/E ratio is at 39.45 x FY17E and 32.90 x FY18E respectively.
  • Earning per share (EPS) of the company for the earnings for FY17E and FY18E is seen at Rs. 12.67 and Rs. 15.18 respectively.
  • On the basis of EV/EBITDA, the stock trades at 17.77 x for FY17E and 15.37 x for FY18E.
  • Price to Book Value of the stock is expected to be at 3.31 x and 3.01 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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