Shri Jagdamba Polymers Q2FY17: Fundamental Analysis - Firstcall India Equity

Firstcall India Equity | May 18, 2016, midnight


SYNOPSIS

  • Shri Jagdamba Polymers Ltd engages in the manufacture and sale of woven polypropylene polyethylene fabrics in India.
  • During the quarter, the company’s net profit stood at Rs. 25.84 million as against Rs. 11.48 million in the corresponding quarter ending of previous year, grew by 125.12%.
  • Revenue for the quarter stood at Rs. 390.10 million from Rs. 356.58 million, when compared with the prior year period.
  • During Q2 FY17, EBIDTA is Rs. 58.04 million as against Rs. 35.12 million in the corresponding period of the previous year.
  • EPS of the company stood at Rs. 29.32 a share in Q2 FY17 as against Rs. 13.03 in the corresponding quarter of the previous year.
  • During Q2 FY17, PBT increased by 107.69% to Rs. 37.34 million from Rs. 17.98 million in Q2 FY16.
  • Revenues for H1 FY17 grew by 14.90% and stood at Rs. 811.95 million as compared to Rs. 706.67 million in H1 FY16.
  • During the half year ended 2016-17, Net Profit increased by 78.15% and stood at Rs. 36.28 million as compared to Rs. 20.36 million in the previous year same period.
  • Net Sales and PAT of the company are expected to grow at a CAGR of 17% and 40% over 2015 to 2018E respectively.


OUTLOOK AND CONCLUSION

  • At the current market price of Rs. 745.00, the stock P/E ratio is at 6.82 x FY17E and 5.47 x FY18E respectively.
  • Earning per share (EPS) of the company for the earnings for F Y17E and F Y18E is seen at Rs. 109.20 and Rs. 136.24 respectively.
  • Net Sales and PAT of the company are expected to grow at a CAGR of 17% and 40% over 2015 to 2018E respectively.
  • On the basis of EV/EBITDA, the stock trades at 3.72 x for FY17E and 2.88 x for FY18E.
  • Price to Book Value of the stock is expected to be at 2.08 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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