Balaji Amines Q2FY18: Firstcall overweight for medium to long term investment | Financial Results | Stock Tips | Stock Recommendation | Overweight | Buy : IndiaNotes.com




Revenue for the quarter stood at Rs. 2011.92 mn from Rs. 1721.51 mn, when compared with the prior year period, an increase of 16.87%.

During Q2 FY18, EBIDTA is Rs. 527.92 mn as against Rs. 407.24 mn in the corresponding period of the previous year, rose by 29.63%.

During Q2 FY18, Profit before tax stood at Rs. 464.67 mn against Rs. 332.20 mn in Q2 FY17. During Q2 FY18, the company’s net profit stood at Rs.291.63 mn against Rs. 217.31 mn in the corresponding quarter ending of previous year.

EPS of the company stood at Rs. 9.00 during the quarter, as against Rs. 6.71 per share over previous year period.

Exports for the quarter ended 30th September, 2017 is recorded at Rs. 398.1 mn as against Rs. 274.9 mn for the corresponding period last year increased to 44.82%.

Net Sales and PAT of the company are expected to grow at a CAGR of 11% and 33% over 2016 to 2019E respectively.

OUTLOOK AND CONCLUSION

At the current market price of Rs.508.45, the stock P/E ratio is at 16.61 x FY18E and 14.35 x FY19E respectively.

 

Earning per share (EPS) of the company for the earnings for FY18E and FY19E is seen at Rs. 30.60 and Rs. 35.43 respectively.

Net Sales and PAT of the company are expected to grow at a CAGR of 11% and 33% over 2016 to 2019E respectively.

On the basis of EV/EBITDA, the stock trades at 9.25 x for FY18E and 8.12 x for FY19E.

 

Price to Book Value of the stock is expected to be at 4.21 x and 3.26 x for FY18E and FY19E respectively.

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

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