Thirumalai Chemicals Q2FY18: Net Sales and Operating Profit likely to grow at a CAGR of 13% and 57%; Overweight | Financial Results | Thirumalai Chemicals Q2FY18 | Stock Recommendation | Overweight | Buy : IndiaNotes.com




The consolidated revenue for the quarter stood at Rs. 4252.80 mn as against Rs. 2772.30 mn, when compared with the prior year period.


During the quarter, the consolidated EBIDTA is Rs. 633.10 mn as against Rs. 334.30 mn in the corresponding period of the previous year, up by 89.38%.


The consolidated PBT for Q2 FY18 stood at Rs. 510.20 mn from Rs. 251.10 mn in Q2 FY17, up by 103.19%.


EPS of the company stood at Rs. 33.10 a share during the quarter, as against Rs. 16.03 per share over previous year period.


For the Six months ended on 30th Sep, 2017, revenue of the company was Rs.7741.50 mn as against Rs.5138.40 mn in corresponding period of previous year.


In H1 FY18, Net Profit of the company has increased to Rs. 671.00 mn from Rs.366.50 mn in H1 FY17, up by 83.08%.


Net Sales and Operating Profit of the company are expected to grow at a CAGR of 13% and 57% over 2016 to 2019E, respectively.

OUTLOOK AND CONCLUSION

At the current market price of Rs. 1953.80, the stock P/E ratio is at 16.62 x FY18E and 13.63 x FY19E respectively.


Earning per share (EPS) of the company for the earnings for FY18E and FY19E is seen at Rs. 117.52 and Rs. 143.39 respectively.


Net Sales and Operating Profit of the company is expected to grow at a CAGR of 13% and 57% over 2016 to 2019E, respectively.


On the basis of EV/EBITDA, the stock trades at 8.17 x for FY18E and 6.79 x for FY19E.


Price to Book Value of the stock is expected to be at 3.99 x and 2.97 x for FY18E and FY19E, respectively.

Hence, we say that, we are Overweight in this particular scrip for Medium to Long term investment.

   Click here to read the full report