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Garware-Wall Ropes Q3FY17: Firstcall are overweight for medium to long term investment - IndiaNotes.com
Garware-Wall Ropes Q3FY17: Firstcall are overweight for medium to long term investment
Firstcall India Equity | Published: 17 Feb, 2017  | Source : IndiaNotes.com

SYNOPSIS

  • Garware-Wall Ropes Ltd is a leading player in Technical Textiles, specializing in providing customized solutions to the cordage and infrastructure industry worldwide.
  • Revenue for the 3rd quarter rose by 4.91% to Rs. 1947.16 million from Rs. 1856.00 million, when compared with the prior year period.
  • The company’s net profit jumps to Rs. 178.62 million in Q3 FY17 against Rs. 146.04 million in the corresponding quarter ending of previous year, an increase of 22.3 1%.
  • During the 3rd quarter, EBIDTA stood at Rs. 309.52 million as against Rs. 257.70 million in the corresponding period of the previous year, up by 20.1 1%.
  • Profit before tax (PBT) stood at Rs. 259.56 million in Q3 FY17 against Rs. 197.04 million in the corresponding quarter of the previous year, up by 31.73%.
  • EPS for Q3 FY17 is at Rs. 8.16; a growth of22.31% over Q3 FY16.
  • For the nine months ended December 31, 2016, Net Sales was Rs. 6522.31 mn as compared to Rs. 6392.15 mn in the corresponding period of last year.
  • During 9M F Y17, Net Profit increased by 42.70% to Rs. 636.36 mn from Rs. 445.95 mn in nine months ended 31st December 2015.
  • Net sales and PAT of the company are expected to grow at a CAGR of 8% and 37% over 2015 to 2018E respectively.


OUTLOOK AND CONCLUSION

  • At the current market price of Rs. 606.00, the stock P/E ratio is at 16.02 x FY17E and 14.18 x FY18E respectively.
  • Earning per share (EPS) of the company for the earnings for FY17E and FY18E is seen at Rs. 37.83 and Rs. 42.74 respectively.
  • Net sales and PAT of the company are expected to grow at a CAGR of 8% and 37% over 2015 to 2018E respectively.
  • On the basis of EV/EBITDA, the stock trades at 8.93 x for FY17E and 7.88 x for FY18E.
  • Price to Book Value of the stock is expected to be at 2.96 x and 2.45 x for FY17E and FY18E respectively.
  • Hence, we say that, we are Overweight in this particular scrip for Medium to Long term investment.

 

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About Firstcall India Equity

Firstcall India Equity of Firstcall India Equity Advisors Pvt. Limited (FIEA), is a leading financial services provider in India and a SEBI Registered Category-I Merchant Banker. FIEA is a culmination of a credible Equity Research Capabilities, Long Standing Relationship with leading FIIs, DFIs, MFs, Overseas Pension Funds etc. The company’s research caters to the needs of the largest news wire and media houses of the world namely Reuters, Thomson, Capital IQ, Themarkets.com, Emerging Markets Euro money Publications-UK. The Company is among the major players in the Debt and Equity markets.


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Disclaimer: The author has taken due care and caution to compile and analyse the data. The opinions expressed above are only the views of the author, and not a recommendation to buy or sell. Neither the author nor IndiaNotes.com accept any liability whatsoever arising from the use of any of the above contents.

 
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