India Glycols Q3FY18: An investment idea for medium to long term |India Glycols Q3FY18 | Stock Recommendation | Overweight | Buy : IndiaNotes.com
The company achieved a turnover of Rs. 9843.20 mn for Q3 FY 2017-18 as against Rs. 8192.30 mn in the corresponding quarter of the previous year, up by 20.15%.
Total Income for Q3 of FY 17‐18 at Rs. 9861.90 mn was higher by 20.20% over previous fiscal’s same quarter total income of Rs. 8204.50 mn.
During the quarter, EBIDTA stood at Rs. 970.70 mn as against Rs. 556.30 mn in the corresponding period of the previous year, up by 74.49%.
Profit before tax (PBT) increased by 313.04% to Rs. 510.10 mn in Q3 FY18 from Rs. 123.50 mn in the corresponding quarter of the previous year.
During the quarter, net profit increased by 284.64% to Rs. 343.10 mn from Rs. 89.20 mn in the corresponding quarter ending of previous year.
EPS of the company stood at Rs. 11.08 in Q3 FY18 against Rs. 2.88 in the corresponding quarter of the previous year.
In 9M FY2017-18, sales of the company grew 16.20% to Rs.31309.40 mn from Rs.26944.10 mn in nine months of the previous year.
For nine months ended 31st Dec 2017, PAT of the company has increased to Rs.572.60 mn fromRs.286.70 mn in corresponding period of the previous year, up by 99.72%.
OUTLOOK AND CONCLUSION
At the current market price of Rs. 505.90, the stock P/E ratio is at 18.31 x FY18E and 13.88 x FY19E respectively.
Earning per share (EPS) of the company for the earnings for FY18E and FY19E is seen at Rs. 27.63 and Rs. 36.46 respectively.
Net Sales and Operating Profit of the company are expected to grow at a CAGR of 17% and 31% over 2016 to 2019E respectively.
On the basis of EV/EBITDA, the stock trades at 7.15 x for FY18E and 6.08 x for FY19E.
Price to Book Value of the stock is expected to be at 1.68 x and 1.50 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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