Rane Madras Q3FY18: Net Sales and PAT set to grow at a CAGR of 17% and 41% | Financial Results | Rane MadrasQ3FY18 | Stock Recommendation | Overweight | Buy : IndiaNotes.com
During the quarter, EBIDTA is Rs. 385.01 mn as against Rs. 210.68 mn in the corresponding period of the previous year, up by 82.75%.
During the quarter, PBT increased by 586.91% to Rs. 197.60 mn from Rs. 28.77 mn in the corresponding period of previous year.
During Q3 FY18, Net profit rose by 317.51% and jumps to Rs. 142.22 mn from Rs. 34.07 mn in Q3 FY17.
EPS of the company stood at Rs. 12.25 a share during the quarter as against an EPS of Rs. 3.24 over previous year period.
Experienced robust demand in Indian Aftermarket segment with 46% Year on Year growth.
Rane (Madras) has been declared an interim dividend of Rs. 4.50/- per equity share of Rs. 10/each.
Total Net Revenue of the company for 9M FY 18 stood at Rs. 8893.15 mn as compared to Rs. 7889.39 mn in 9M FY17, up by 12.72%.
Net Profit for 9M FY 18 rose by 85.41% at Rs. 253.41 mn as compared to Rs. 136.68 mn in 9M FY17.
Net Sales and PAT of the company are expected to grow at a CAGR of 17% and 41% over 2016 to 2019E, respectively.
OUTLOOK AND CONCLUSION
At the current market price of Rs. 890.95, the stock P/E ratio is at 26.56 x FY18E and 21.19 x FY19E respectively.
Earnings per share (EPS) of the company for the earnings for FY18E and FY19E are seen at Rs. 33.55 and Rs. 42.05 respectively.
Net Sales and PAT of the company are expected to grow at a CAGR of 17% and 41% over 2016 to 2019E respectively.
On the basis of EV/EBITDA, the stock trades at 9.77 x for FY18E and 8.78 x for FY19E.
Price to Book Value of the stock is expected to be at 4.95 x and 4.02 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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