Solar Industries Q3FY18: Order book stands at Rs.13060 mn ; Overweight | Financial Results | Solar Industries Q2FY18 | Stock Recommendation | Overweight | Buy : IndiaNotes.com
– Solar Industries India Ltd (SIIL) is India’s largest manufacturer and exporter of Explosive and Initiating System providing complete range of Industrial Explosives.
– During Q3 FY18, consolidated net profit stood at Rs. 541.50 mn against Rs. 475.70 mn in Q3 FY17, an increase of 13.83%.
– Consolidated revenue for the quarter stood at Rs. 4656.80 mn from Rs. 4542.90 mn in the corresponding period of previous year.
– During the quarter, consolidated EBIDTA is Rs. 1069.30 mn as against Rs. 814.90 mn in Q3 FY17, grew by 31.22%.
– During Q3 FY18, consolidated PBT stood at Rs. 825.80 mn from Rs. 652.50 mn in Q3 FY17, an increase of 26.56%.
– EPS of the company stood at Rs. 5.98 a share during 1 the quarter, as against Rs. 5.26 per share over previous year period.
– Revenue from exports and overseas business increased by 25.07% to Rs. 1682.80 mn in Q3FY18 as compared to similar quarter Q3 FY17.
– Increasing focus on housing and infrastructural developments has accelerated demand for products manufactured by SIIL. l
– During 9M FY18, Net sales stood at Rs. 13761.30 mn from Rs. 12517.00 mn in 9M FY17.
– During the nine months ended 31St Dec, 2017, Net profit rose by 17.52% to Rs. 1546.70 mn from Rs. 1316.10 mn in the nine months ended 31St Dec, 2016. The company current order book stands at Rs. 13060 mn including defense order book of 1610 mn.
– Nets sales and PAT of the company are expected to grow at a CAGR of 12% and 14% over 2016 to 2019E respectively.
Outlook and Valuation
At the current market price of Rs.1020.00, the stock P/E ratio is at 43.04 x F Y18E and 37.63 x FY19E respectively.
Earning per share (EPS) of the company for the earnings for FY18E and FY19E is seen at Rs. 23.70 and Rs. 27.10 respectively.
Nets sales and PAT of the company are expected to grow at a CAGR of 12% and 14% over 2016 to 2019E respectively.
On the basis of EV/EBITDA, the stock trades at 22.85 x for F Y18E and 19.96 x for F Y19E.
Price to Book Value of the stock is expected to be at 8.63 x and 7.42 x for F Y18E and F Y19E respectively.
The company current order book stands at Rs. 13060 mn including defense order book of 1610 mn. With the government’s increased focus on mining, infrastructure, housing, defense and international business .The Company have a positive outlook on business.” The commercial rollover of defense products are delayed, but very positive to see rolling from April, 2018 and achieving targets by 2020. Recently, The Company has received Transfer of Technology (ToT) for mass production of a crucial solid propellant booster of Brahmas. The demand for the booster is expected to be high, as Indian Air force will induct more missiles on its fighter jets in the near future which will help Solar Industries. Hence, we say that, we are Overweight in this particular scrip for Medium to Long term investment.
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