Gujarat Narmada Valley Fertilizers & Chemicals: EBIDTA margins stood at 22.76%; Buy at CMP | Financial Results | Gujarat Narmada Flyash Company Q2FY18 | Indianotes.com


The company turnover stood at Rs. 15067.50 mn for Q2 FY18 as against Rs. 14617.80 mn in the corresponding quarter of the previous year, up by 3.08%.

During the quarter, EBIDTA stood at Rs. 3428.90 mn as against Rs. 3509.80 mn in the corresponding period of the previous year.

During the quarter ended Q2 FY18, PBT increased by 7.74% to Rs. 2452.80 mn from Rs. 2276.50 mn in the corresponding quarter ending of previous year.

During the quarter, Net profit stood at Rs. 1661.10 mn as against Rs. 1654.80 mn in the corresponding quarter ending of previous year.

EPS of the company stood at Rs. 10.69 a share during the quarter as against Rs. 10.65 in the corresponding quarter ending of previous year.

During the quarter, EBIDTA and PAT margins stood at 22.76% and 11.02% respectively.

OUTLOOK AND CONCLUSION

At the current market price of Rs.443.40, the stock P/E ratio is at 19.36 x FY18E and 17.23 x FY19E respectively.

Earning per share (EPS) of the company for the earnings for FY18E and FY19E is seen at Rs. 22.91 and Rs. 25.73 respectively.

Net Sales of the company is expected to grow at a CAGR of 6% over 2016 to 2019E

On the basis of EV/EBITDA, the stock trades at 8.54 x for FY18E and 7.65 x for FY19E.

Price to Book Value of the stock is expected to be at 1.66 x and 1.51 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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