For 4Q FY 2012, TVS Srichkara posted a decent set of numbers. The company
reported 15 % y o y growth in its top line; however, it was flat on a qoq basis and
came in at Rs. 348 cr against our estimate of Rs. 376 cr.
The company was able to sustain its operating margin for the quarter at 7.4 % , which was a marginal
expansion of 0.34% on a q o q basis; however, it contracted by 1.03b% y o y. Other
income for the quarter in creased by 180 % on a q o q basis to Rs. 5.4 cr.
The company reported profit of Rs.10 cr, 48.2 % q o q growth, in-line with our estimate for
4Q FY 2012. For FY 2012, the company reported a 28.6 % in crease in its revenue to
Rs.1,396 cr ( Rs.1,085 cr).
Operating margin was flat on a y o y basis to 8.3 %, in-line with our estimate. Profit for the year was also flat at Rs.40 cr ( Rs.39 cr), in-line with our
estimate.
The stock is currently trading at PE of 3.7x for FY2014E. The company has recommended dividend at 135%, i.e., Rs.13.50 per share for FY 2012. Backed
by stabilizing rubber prices, depreciating INR and the company’s rigorous advertisements, our outlook for the company remains positive. We maintain our
Buy recommendation on the stock with a target price of Rs. 460.
By Angel Broking, 6th Floor, Ackruti Star Central Road,MIDC, Andheri (E) , Mumbai-93
Main : (91-22) 3935 7600 Extn : 6956 Website : www.angelbroking.com
reported 15 % y o y growth in its top line; however, it was flat on a qoq basis and
came in at Rs. 348 cr against our estimate of Rs. 376 cr.
The company was able to sustain its operating margin for the quarter at 7.4 % , which was a marginal
expansion of 0.34% on a q o q basis; however, it contracted by 1.03b% y o y. Other
income for the quarter in creased by 180 % on a q o q basis to Rs. 5.4 cr.
The company reported profit of Rs.10 cr, 48.2 % q o q growth, in-line with our estimate for
4Q FY 2012. For FY 2012, the company reported a 28.6 % in crease in its revenue to
Rs.1,396 cr ( Rs.1,085 cr).
Operating margin was flat on a y o y basis to 8.3 %, in-line with our estimate. Profit for the year was also flat at Rs.40 cr ( Rs.39 cr), in-line with our
estimate.
The stock is currently trading at PE of 3.7x for FY2014E. The company has recommended dividend at 135%, i.e., Rs.13.50 per share for FY 2012. Backed
by stabilizing rubber prices, depreciating INR and the company’s rigorous advertisements, our outlook for the company remains positive. We maintain our
Buy recommendation on the stock with a target price of Rs. 460.
By Angel Broking, 6th Floor, Ackruti Star Central Road,MIDC, Andheri (E) , Mumbai-93
Main : (91-22) 3935 7600 Extn : 6956 Website : www.angelbroking.com
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