Fairchem Speciality: Net profit up by 539.38% in Q2FY18; Overweight | Financial Results | Fairchem Speciality Q2FY18 | Stock Recommendation | Overweight | Buy : IndiaNotes.com
Revenue for the quarter increased by 22.63% at Rs.573.95 mn as against Rs. 468.03 mn, when compared with the prior year period.
During Q2 FY18, EBIDTA is Rs. 102.78 mn as against Rs. 38.91 mn in the corresponding period of the previous year.
During Q2 FY18, Profit before tax increased to Rs. 77.33 mn from Rs. 14.56 mn in Q2 FY17.
During Q2 FY18, net profit rose by 539.38% andstood at Rs. 59.57 mn against Rs. 9.32 mn in the corresponding quarter ending of previous year.
OUTLOOK AND CONCLUSION
At the current market price of Rs. 410.10, the stock P/E ratio is at 102.61 x FY18E and 87.74 x FY19E respectively.
Earning per share (EPS) of the company for the earnings for FY18E and FY19E is seen at Rs. 4.00 and Rs. 4.67
Net Sales and PAT of the company expected to grow at a CAGR of 20% and 18% over 2016 to 2019E, respectively.
On the basis of EV/EBITDA, the stock trades at 49.00 x for FY18E and 42.44 x for FY19E.
Price to Book Value of the stock is expected to be at 18.08 x and 14.99 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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