PTC Industries Q2FY17: Firstcall are overweight for medium to long term investment

Firstcall India Equity | May 17, 2016, midnight


SYNOPSIS

  • PTC Industries Limited is one of the world's leading suppliers of high precision cast components for critical and super critical operations.
  • Revenue for the quarter stood at Rs. 287.02 mn from Rs. 225.55 mn, when compared with the prior year period, an increase of 27.25%.
  • During Q2 FY17, EBIDTA is Rs. 45.21 mn as against Rs. 34.44 mn in the corresponding period of the previous year, an increase of 31.27%.
  • PET increased by 38.12% from Rs. 16.66 mn in Q2 FY 16 to Rs. 23.01 mn during the quarter ended 30th September 2016.
  • During Q2 FY17, the company’s net profit jumps to Rs. 16.56 mn from Rs. 11.81 mn in Q2 FY16, an increase of 40.22%.
  • EPS of the company stood at Rs. 3.16 during the quarter, as against Rs. 2.25 per share over previous year period.
  • For the Half Year ended September 30, 2016, Net Sales increased by 20.56% to Rs. 516.08 mn from Rs. 428.07 mn in the corresponding period of last year.
  • Net Profit during H1 F Y17 stood at Rs. 32.67 mn up by 31.47% as against Rs. 24.85 mn for the six months ended 3oth September 2015.
  • Net Sales and PAT of the company are expected to grow at a CAGR of 5% and 6% over 2015 to 2018E, respectively.


OUTLOOK AND CONCLUSION

  • At the current market price of Rs.278.75, the stock P/E ratio is at 21.04 x FY17E and 18.69 x FY18E respectively.
  • Earning per share (EPS) of the company for the earnings for FY17E and FY18E is seen at Rs. 13.25 and Rs. 14.91 respectively.
  • Net Sales and PAT of the company are expected to grow at a CAGR of 5% and 6% over 2015 to 2018E respectively.
  • On the basis of EV/EBITDA, the stock trades at 13.48 x for FY17E and 12.76 x for FY18E.
  • Price to Book Value of the stock is expected to be at 1.15 x and 1.08 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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