Somany Ceramics Q3FY17: Fundamental Analysis - Firstcall India Equity

Firstcall India Equity | May 18, 2016, midnight


SYNOPSIS

  • Somany Ceramics Limited established in 1968 manufactures and sells ceramic tiles and allied products under the SOMANY brand in India.
  • During Q3 F Y17, the company’s net profit jumps to Rs. 201.80 million against Rs. 138.60 million in the corresponding quarter ending of previous year, an increase of 45 .60%.
  • Revenue for the quarter rose by 5.66% to Rs. 4387.30 million from Rs. 4152.10 million, when compared with the prior year period.
  • For the Q3 FY17, EBITDA is Rs. 425.30 million as against Rs. 311.00 million in the corresponding period of the previous year.
  • During Q3 FY17, Profit before tax grew 47.84% and stood at Rs. 315.20 million against Rs. 213.20 million in Q3 FY16.
  • EPS of the company stood at Rs. 4.76 a share during the quarter, as against Rs. 3.27 per share over previous year period.
  • During Nine months ended net profit of the Company increased to Rs. 610.90 million from Rs. 350.00 million, an increase of 74.54%.
  • Net Sales and PAT of the company are expected to grow at a CAGR of 13% and 41% over 2015 to 2018E respectively.


OUTLOOK AND CONCLUSION

  • At the current market price of Rs.600.80, the stock P/E ratio is at 27.35 x FY17E and 22.85 x FY18E respectively.
  • Earning per share (EPS) of the company for the earnings for FY17E and FY18E is seen at Rs. 21.97 and Rs. 26.29 respectively.
  • Net Sales and PAT of the company are expected to grow at a CAGR of 13% and 41% over 2015 to 2018E respectively.
  • On the basis of EV/EBITDA, the stock trades at 14.24 x for FY17E and 12.07 x for FY18E.
  • Price to Book Value of the stock is expected to be at 4.96 x and 4.08 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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