INEOS Styrolution India Q2FY17: Fundamental Analysis - Firstcall India Equity

Firstcall India Equity | May 17, 2016, midnight


SYNOPSIS

  • INEOS Styrolution India Ltd is the leading, global styrenics supplier with a focus on styrene monomer, polystyrene, ABS standard and styrenics specialties.
  • During Q2 FY17, the company’s net profit increased by 29.24% to Rs. 191.97 million as against Rs. 148.54 million in the corresponding quarter ending of previous year.
  • Revenue for the 2nd quarter stood at Rs. 4402.36 million as compared to Rs. 4511.84 million during corresponding quarter of previous year.
  • For Q2 FY17, EBITDA stood at Rs. 370.65 million as against Rs. 98.84 million in the corresponding period of the previous year, up by 274.99%.
  • During the quarter, PBT stood at Rs. 295.18 million from Rs. 1.92 million in the corresponding period of the previous year.
  • EPS of the company stood at Rs. 10.92 a share during the quarter, as against Rs. 8.45 per share over previous year period.
  • In H1 FY17, Net sales stood at Rs. 8667.15 million as compared to Rs. 7647.30 million in H1 FY16.
  • For six month period of FY17, net profit stood at Rs. 341.75 million as compared to Rs. 329.32 million for the Six month ended of previous financial year.
  • Net Sales & PAT of the company are expected to grow at a CAGR of 9% and 29% over 2015 to 2018E, respectively.


OUTLOOK AND CONCLUSION

  • At the current market price of Rs. 596.60, the stock P/E ratio is at 15.67 X FY17E and 14.06 X FY18E respectively.
  • Earning per share (EPS) of the company for the earnings for FY17E and FY18E is seen at Rs. 38.07 and Rs. 42.43 respectively.
  • Net Sales and PAT of the company are expected to grow at a CAGR of 9% and 29% over 2015 to 2018E respectively.
  • On the basis of EV/EBITDA, the stock trades at 8.60 X for FY17E and 7.89 X for FY18E.
  • Price to Book Value of the stock is expected to be at 1.79 X and 1.59 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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