Wim Plast Q2FY17: Firstcall are overweight for medium to long term investment

Firstcall India Equity | May 16, 2016, midnight


SYNOPSIS

  • WIM Plast Ltd is an India-based company engaged in the manufacturing activity of plastic molded furniture, plastic extrusion sheets, molds and air coolers.
  • The company has achieved a turnover of Rs. 770.94 mn for the 2nd quarter of the FY 2016-17 as against Rs. 814.02 mn in the corresponding quarter of the previous year.
  • During the quarter, net profit increased by 5.24% to Rs. 91.35 mn from Rs. 86.80 mn in the corresponding quarter ending of previous year.
  • During the quarter, EBIDTA stood at Rs. 165.33 mn as against Rs. 153.83 mn in the corresponding period of the previous year, up by 7.48%.
  • Profit before tax (PBT) stood at Rs. 135.23 mn in Q2 FY17 against Rs. 125.47 mn in the corresponding quarter of the previous year, up by 7.78%.
  • EPS of the company stood at Rs. 7.61 in Q2 FY17 as against Rs. 14.46 in the corresponding quarter of the previous year.
  • For the Half Year ended September 30, 2016, Net Sales increased by 5.05% to Rs. 1765.85 mn from Rs. 1681.03 mn in the corresponding period of last year.
  • Net Profit during H1 FY17 stood at Rs. 226.40 mn up by 24.89% as against Rs. 181.28 mn for the six months ended 3oth September 2015.
  • Net Sales and PAT of the company are expected to grow at a CAGR of 8% and 13% over 2015 to 2018E, respectively.


OUTLOOK AND CONCLUSION

  • At the current market price of Rs. 1500.40, the stock P/E ratio is at 36.56 x FY17E and 33.81 x FY18E respectively.
  • Earning per share (EPS) of the company for the earnings for FY17E and FY18E is seen at Rs. 41.03 and Rs. 44.37 respectively.
  • Net Sales and PAT of the company are expected to grow at a CAGR of 8% and 13% over 2015 to 2018E respectively.
  • On the basis of EV/EBITDA, the stock trades at 20.33 x for FY17E and 18.65 x for FY18E.
  • Price to Book Value of the stock is expected to be at 6.99 x and 6.01 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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