Alkyl Amines Chemicals Q3FY17: Fundamental Analysis - Firstcall India Equity

Firstcall India Equity | May 19, 2016, midnight


SYNOPSIS

  • Alkyl Amines Chemicals Limited is a global supplier of amines and amine-based chemicals to the pharmaceutical, agrochemical, rubber chemical water treatment industries, among others.
  • Revenue for the quarter rose by 22.19% to Rs. 1363.67 mn from Rs. 1116.03 mn, when compared with the prior year period.
  • During Q3 FY17, Operating Profit (EBIDTA) stood at Rs. 298.70 mn as against Rs. 212.34 mn in Q3 FY16, up by 40.67.
  • During Q3 FY17, PBT up by 57.30% to Rs. 250.20 mn vs Rs. 159.05 mn in Q3 FY16.
  • During the quarter, net profit jumps to Rs. 168.92 mn from Rs. 118.31 mn in the corresponding quarter ending of previous year, an increase of 42.78%.
  • EPS of the company stood at Rs. 8.28 during the quarter, as against Rs. 5.80 per share over previous year period.
  • For the nine months ended December 31, 2016, Net Sales stood at Rs. 3695.07 mn from Rs. 3625.57 mn in the corresponding period of last year.
  • Net Profit during 9M FY17 stood at Rs. 383.20 mn as compared to Rs. 344.77 mn for the nine months ended 31st December 2015, up by 11.15%.
  • Net Sales and Operating Profit of the company are expected to grow at a CAGR of 6% each over 2015 to 2018E.


OUTLOOK AND CONCLUSION

  • At the current market price of Rs.362.05, the stock P/E ratio is at 13.66 x FY17E and 12.41 x FY18E respectively.
  • Earning per share (EPS) of the company for the earnings for FY17E and FY18E is seen at Rs. 26.51 and Rs. 29.17 respectively.
  • Net Sales and Operating Profit of the company are expected to grow at a CAGR of 6% each over 2015 to 2018E respectively.
  • On the basis of EV/EBITDA, the stock trades at 8.13 x for FY17E and 7.37 x for FY18E.
  • Price to Book Value of the stock is expected to be at 2.99 x and 2.60 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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