Shaily Engineering Plastics Q3FY18: Net profit jumps by 245.69% YoY; Overweight | Shaily Engineering Plastics Q3FY18 | Stock Recommendation | Overweight | Buy : IndiaNotes.com
During the quarter, EBIDTA stood at Rs. 137.52 million as against Rs. 80.80 million in the corresponding period of the previous year, up by 70.19%.
Profit before tax (PBT) stood at Rs. 74.20 million in Q3 FY18 against Rs. 26.64 million in the corresponding quarter of the previous year.
During the 3rd quarter, net profit stood at Rs. 59.05 million against Rs. 17.08 million in the corresponding quarter ending of previous year, rose by 245.69%.
EPS of the company stood at Rs. 7.10 in Q3 FY18 against Rs. 2.05 in the corresponding quarter of the previous year.
During the quarter, EBIDTA and PAT margins stood at 17.50% and 7.51%, respectively.
During the nine months ended FY18, Net Sales stood at Rs. 2283.07 mn as against Rs. 1842.03 mn in the nine months ended FY17.
During 9M FY18, Net profit stood at Rs. 166.98 mn as against Rs. 99.72 mn in 9M FY17.
Net Sales and PAT of the company are expected to grow at a CAGR and 19% and 23% over 2016 to 2019E, respectively.
OUTLOOK AND CONCLUSION
At the current market price of Rs. 1150.00, the stock P/E ratio is at 38.95 x FY18E and 32.18 x FY19E respectively.
Earning per share (EPS) of the company for the earnings for FY18E and FY19E is seen at Rs. 29.53 and Rs. 35.73 respectively.
Net Sales and Operating Profit of the company are expected to grow at a CAGR of 19% and 23% over 2016 to 2019E respectively.
On the basis of EV/EBITDA, the stock trades at 17.50 x for FY18E and 15.12 x for FY19E.
Price to Book Value of the stock is expected to be at 7.65 x and 6.55 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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