Thirumalai Chemicals Q3FY17: Fundamental Analysis - Firstcall India Equity

Firstcall India Equity | May 19, 2016, midnight


SYNOPSIS

  • Thirumalai Chemicals Ltd (TCL) is an India-based company, which is engaged in manufacturing of chemicals.
  • The consolidated turnover of Rs. 2485.10 million for Q3 FY17 as against Rs. 2047.70 million in Q3 FY16, an increase of21.36%.
  • During the 3rd quarter, consolidated net profit stood at Rs. 155.90 million as against Rs. 44.70 million in the corresponding quarter ending of previous year, higher by 248.77%.
  • During the 3rd quarter, consolidated EBIDTA stood at Rs. 400.80 million, up by 183.05%.
  • During Q3 FY17, consolidated PBT stood at Rs. 270.00 million as compared to Rs. 51.60 million in Q3 FY16.
  • EPS of the company stood at Rs. 15.22 during Q3 FY17 as compared to Rs. 4.37 in Q3 FY16.
  • For the nine months ended December 31, 2016, Net Sales stood at Rs. 7222.30 million from Rs. 7012.30 million in the corresponding period of last year.
  • Net Profit during 9M FY17 stood at Rs. 522.20 million as compared to Rs. 86.35 million for the nine months ended 31St December 2015, higher by 504.75%.
  • Operating profit of the company is expected to grow at a CAGR of 24% over 2015 to 2018E.


OUTLOOK AND CONCLUSION

  • At the current market price of Rs. 785.75, the stock P/E ratio is at 9.74 x FY17E and 7.64 x FY18E respectively.
  • Earning per share (EPS) of the company for the earnings for FY17E and FY18E is seen at Rs. 80.63 and Rs. 102.89 respectively.
  • Operating profit of the company is expected to grow at a CAGR of 24% over 2015 to 2018E.
  • On the basis of EV/EBITDA, the stock trades at 4.62 x for FY17E and 3.85 x for FY18E.
  • Price to Book Value of the stock is expected to be at 2.74 x and 2.05 x for FY17E and FY18E, respectively.
  • Hence, we say that, we are Overweight in this particular scrip for Medium to Long term investment.

 

blog comments powered by Disqus