N R Agarwal Industries Q2FY17: Fundamental Analysis - Firstcall India Equity

Firstcall India Equity | May 17, 2016, midnight


SYNOPSIS

  • N.R.Agarwal Industries Limited is an India-based company, which is engaged in the manufacture of paper, paper boards and newsprint.
  • The company has achieved a turnover of Rs. 2479.49 million for the 2nd quarter of the FY 2016-17 as against Rs. 2128.06 million in the corresponding quarter of the previous year.
  • During the quarter, net profit stood at Rs. 139.86 million against net loss of Rs. 22.88 million in the corresponding quarter ending of previous year.
  • During the quarter, EBIDTA stood at Rs. 367.31 million as against Rs. 150.85 million in the corresponding period of the previous year, up by 143.49%.
  • Earnings per Share of the company stood at Rs. 8.22 in Q2 F Y17.
  • For the Half Year ended September 30, 2016, Net Sales increased by 18.24% to Rs. 5007.90 million from Rs. 4235.22 million in the corresponding period of last year.
  • Net Profit during H1 FY17 stood at Rs. 260.81 million against net loss of Rs. 35.26 million for the six months ended 3oth September 2015.
  • Net Sales and Operating Profit of the company are expected to grow at a CAGR of 21% and 68% over 2015 to 2018E respectively.


OUTLOOK AND CONCLUSION

  • At the current market price of Rs. 230.00, the stock P/E ratio is at 5.33 x FY17E and 4.25 x FY18E respectively.
  • Earning per share (EPS) of the company for the earnings for FY17E and FY18E is seen at Rs. 43.12 and Rs. 54.10 respectively.
  • Net Sales and Operating Profit of the company are expected to grow at a CAGR of 21% and 68% over 2015 to 2018E respectively.
  • On the basis of EV/EBITDA, the stock trades at 4.26 x for FY17E and 3.60 x for FY18E.
  • Price to Book Value of the stock is expected to be at 2.34 x and 1.51 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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