Orient Bell Q3FY18: Net Profit grows a robust 58.58% ; Overweight | Financial Results | Orient Bell Q3FY18 | Stock Recommendation | Overweight | Buy : IndiaNotes.com
– Orient Bell Limited is an India-based company, which is engaged in the manufacture and trading of digital, vitrified, ceramic and ultra-vitrified tiles
– The company achieved a turnover of Rs. 1658.20 million for Q3 FY 2017-18 as against Rs. 1532.50 million in the corresponding quarter of the previous year, an increase of 8.20%.
– PAT of the company grew 58.58% to Rs. 42.50 million in Q3 FY18 from Rs. 26.80 million in the corresponding quarter ending of previous year.
– During the quarter, EBIDTA stood at Rs. 120.50 million as against Rs. 114.50 million in the corresponding quarter of the previous year.
– Profit before tax (PBT) of the company increased by 42.44% to Rs. 67.80 million in Q3 FY18 from Rs. 47.60 million in Q3 FY17.
– EPS of the company has increased to Rs. 2.99 in Q3 FY18 from Rs. 1.89 in Q3 FY17.
– Finance cost of the company has reduced to Rs.17.80 mn in Q3 FY 18 from Rs. 31.90 mn in Q3 FY17.
– Government of India has reduced GST tax on tiles products from 28% to 18%.
– Nine months ended on 31St Dec 2017, Net sales of the company were Rs. 4588.60 mn as against Rs. 4681.20 mn in corresponding nine months of the previous year.
– In 9M FY 2018, PAT of the company has increased to 317.40 mn as compared to Rs. 71.70 mn in 9M FY2017.
Outlook and Valuation
At the current market price of Rs.324.80, the stock P/E ratio is at 12.41 X F Y18E and 23.10 X FY19E respectively.
Earning per share (EPS) of the company for the earnings for F Y18E and FY19E is seen at Rs. 26.18 and Rs. 14.06 respectively.
On the basis of EV/EBITDA, the stock trades at 10.32 X for F Y18E and 8.96 X for F Y19E.
Price to Book Value of the stock is expected to be at 2.24 X and 2.01 X for F Y18E and F Y19E respectively.
Hence, we say that, we are Overweight in this particular scrip for Medium to Long term investment.
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