Sintex Industries reported a marginal revenue degrowth of 2% year on year to Rs. 116 crore and EBITDA margin of 14.1% which is in line with our estimate.
Reported PAT fell 27% year on year to Rs. 82.2 crore which includes forex gain of Rs.135 mn due to new AS11 amendment.
Going forward we expect
(1) monolithic business to revive post Q1 FY13 (post election) and show better order intake, execution, and collection of payment,
(2) prefab business to show new activity and faster collection starting H1 FY13,
(3) domestic custom moulding to start delivering better results. Overseas custom moulding will be hard hit due to European and US slowdown.
Buy - Target: Rs 115
Review By PINC Research
Reported PAT fell 27% year on year to Rs. 82.2 crore which includes forex gain of Rs.135 mn due to new AS11 amendment.
Going forward we expect
(1) monolithic business to revive post Q1 FY13 (post election) and show better order intake, execution, and collection of payment,
(2) prefab business to show new activity and faster collection starting H1 FY13,
(3) domestic custom moulding to start delivering better results. Overseas custom moulding will be hard hit due to European and US slowdown.
Buy - Target: Rs 115
Review By PINC Research
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