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

Firstcall India Equity | April 28, 2016, midnight

 

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.

 

blog comments powered by Disqus