This company holds long-standing track record of consistent dividends; Overweight

Firstcall India Equity | April 18, 2016, midnight


OUTLOOK AND CONCLUSION


- At the current market price of Rs.319.00, the stock P/E ratio is at 22.00 X F Y17E and 20.08 X FY18E respectively.


- Earning per share (EPS) of the company for the earnings for FY17E and FY18E is seen at Rs. 14.50 and Rs. 15.89 respectively.


- Net Sales and PAT of the company are expected to grow at a CAGR of 8% and 13% over 2015 to 2018B respectively.


- On the basis of EV/EBITDA, the stock trades at 10.63 X for FY17E and 9.71 X for FY18E.


- Price to Book Value of the stock is expected to be at 2.90 X and 2.62 X for FY17E and FY18E respectively.


- Hence, we say that, we are Overweight in this particular scrip for Medium to Long term investment.


SYNOPSIS


- GMM Pfaudler Ltd (GMMP) is a leading supplier of process equipment to the pharmaceutical and chemical industries.


- Revenue for the quarter stood at Rs. 596.53 mn as against Rs. 599.46 mn, when compared with the prior year period.


- During the quarter, EBIDTA is Rs. 107.09 mn as against Rs. 83.15 mn in the corresponding period of the previous year, an increase of 28.79%.


- EBITDA Margin at 17.95% for Q4 FY16 as against 13.87% in Q4 FY15.


- During Q4 FY16, Profit before tax stood at Rs. 87.75 mn against Rs. 62.62 mn in Q4 FY15, up by 40.13%.


- During Q4 F Y16, net profit increased by 43.44% to Rs. 57.85 mn from Rs. 40.33 mn in Q4 FY15.


- EPS of the company stood at Rs. 3.96 during the quarter, as against Rs. 2.76 per share over previous year period.


- GMM Pfaudler Ltd has approved the Final Dividend Rs. 0.90 per share on face value of Rs. 2/- each for the year 2015-16.


- During the F Y2015-16, Total Operating revenue was Rs. 2296.01 mn as compared to Rs. 2240.09 mn in FY15, a marginal growth of 2%.


- Profit after taxes stood at Rs. 183.58 mn for FY16 as compared to a profit of Rs. 172.03 mn in FY15, an increase of 6.7%.


- Net Sales and PAT of the company are expected to grow at a CAGR of 8% and 13% over 2015 to 2018E respectively.

 

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