For 3Q FY 2012, Simplex Infra’s (Simplex) numbers came above our and street’s
expectations on the revenue and earnings front and marginally lower at the
EBITDAM level.
At the end of the quarter, the company’s order book stood at
Rs.14,442 cr (2.9x FY 2011 revenue). Order inflow for the quarter stood at
Rs.1,018 cr, with the company having L1 orders worth Rs. 2,565 cr. We are revising
our estimates for FY 2012& FY2013 upwards owing to better-than-expected
performance during the quarter.
We maintain our Buy view on the stock. Healthy set of numbers: On the top-line front, Simplex reported robust growth of
36.7% yoy to Rs.1,594 cr, higher than our estimate of Rs.1,348 cr (consensus
Rs.1,145 cr). This performance was on account of 40% and 15% y o y growth in the
domestic and overseas segments, respectively. EBITDAM dipped by 1.2% y o y to
8.0% for the quarter, marginally lower than our estimate of 8.6%.
Interest cost came in at Rs.55.0 cr, reporting a jump of 52.0% y o y / 7.6% q o q and in-line with
our estimate of Rs.54.3 cr. PAT declined by 22.3% yoy to Rs.18 cr, above our
estimate of Rs.13.6 cr. Better than expected bottom-line performance was due to
robust revenue growth during the quarter.
Outlook & valuation:
Prior to 2Q FY 2012, Simplex’s performance was affected
by slowdown on the execution front, stretched working capital and subdued
order inflow.However, in the past 2 quarters, Simplex’s performance has
improved, with execution and order inflow picking up along with improvement
on the working capital front (during 3Q FY 2012).
Hence, we have revised our estimates upwards for FY 2012 and FY 2013. Our revised target price for the
stock is Rs. 261 (Rs. 233), based on 9x FY 2013 E earnings, implying an upside of
30.9%. Hence, we recommend Buy on the stock.
Shareholding Pattern (%)
Promoters 55.0
MF / Banks / Indian Fls 25.2
FII / NRIs / OCBs 14.7
Indian Public / Others 5.2
Target Price Rs.261
Investment Period 12 Months
Review by Angel Broking
Research Team Tel: 022 - 39357800 E-mail: research@angelbroking.com Website: www.angelbroking.com
expectations on the revenue and earnings front and marginally lower at the
EBITDAM level.
At the end of the quarter, the company’s order book stood at
Rs.14,442 cr (2.9x FY 2011 revenue). Order inflow for the quarter stood at
Rs.1,018 cr, with the company having L1 orders worth Rs. 2,565 cr. We are revising
our estimates for FY 2012& FY2013 upwards owing to better-than-expected
performance during the quarter.
We maintain our Buy view on the stock. Healthy set of numbers: On the top-line front, Simplex reported robust growth of
36.7% yoy to Rs.1,594 cr, higher than our estimate of Rs.1,348 cr (consensus
Rs.1,145 cr). This performance was on account of 40% and 15% y o y growth in the
domestic and overseas segments, respectively. EBITDAM dipped by 1.2% y o y to
8.0% for the quarter, marginally lower than our estimate of 8.6%.
Interest cost came in at Rs.55.0 cr, reporting a jump of 52.0% y o y / 7.6% q o q and in-line with
our estimate of Rs.54.3 cr. PAT declined by 22.3% yoy to Rs.18 cr, above our
estimate of Rs.13.6 cr. Better than expected bottom-line performance was due to
robust revenue growth during the quarter.
Outlook & valuation:
Prior to 2Q FY 2012, Simplex’s performance was affected
by slowdown on the execution front, stretched working capital and subdued
order inflow.However, in the past 2 quarters, Simplex’s performance has
improved, with execution and order inflow picking up along with improvement
on the working capital front (during 3Q FY 2012).
Hence, we have revised our estimates upwards for FY 2012 and FY 2013. Our revised target price for the
stock is Rs. 261 (Rs. 233), based on 9x FY 2013 E earnings, implying an upside of
30.9%. Hence, we recommend Buy on the stock.
Shareholding Pattern (%)
Promoters 55.0
MF / Banks / Indian Fls 25.2
FII / NRIs / OCBs 14.7
Indian Public / Others 5.2
Target Price Rs.261
Investment Period 12 Months
Review by Angel Broking
Research Team Tel: 022 - 39357800 E-mail: research@angelbroking.com Website: www.angelbroking.com
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