Gujarat Pipavav Port Q3FY17: Fundamental Analysis - Firstcall India Equity

Firstcall India Equity | May 24, 2016, midnight


SYNOPSIS

  • Gujarat Pipavav Port Limited is an India-based company engaged in the business of port development and operations at Pipavav Port.
  • The company achieved a turnover of Rs. 1691.63 mn for Q3 FY17 as against Rs. 1654.20 mn in the corresponding quarter of the previous year, an increase of 2.26%.
  • During the quarter, net profit increased by 21.10% to Rs. 645.45 mn from Rs. 533.01 mn in the corresponding quarter ending of previous year.
  • During the quarter, EBIDTA stood at Rs. 1152.17 mn as against Rs. 1065.42 mn in the corresponding period of the previous year, up by 8.14%.
  • Profit before tax (PBT) stood at Rs. 876.55 mn in Q3 FY17 against Rs. 815.51 mn in the corresponding quarter of the previous year, up by 7.48%.
  • EPS of the company stood at Rs. 1.34 in Q3 FY17 against Rs. 1.10 in the corresponding quarter of the previous year.
  • For the Nine months ended December 31, 2016, the company’s Net profit stood at Rs.1837.16 mn as compared to Rs.1868.26 mn in the corresponding nine months period of last year.
  • During nine months ended December 31, 2016, net sales increased to Rs. 5085.33 mn from Rs. 4991.86 mn in nine months ended December 31, 2015.
  • Net Sales and PAT of the company are expected to grow at a CAGR of 10% and 9% over 2015 to 2018E, respectively.


OUTLOOK AND CONCLUSION

  • At the current market price of Rs. 153.55, the stock P/E ratio is at 29.70 x FY17E and 27.25 x FY18E respectively.
  • Earning per share (EPS) of the company for the earnings for FY17E and FY18E is seen at Rs. 5.17 and Rs. 5.63 respectively.
  • Net Sales and PAT of the company are expected to grow at a CAGR of 10% and 9% over 2015 to 2018E respectively.
  • On the basis of EV/EBITDA, the stock trades at 15.85 x for FY17E and 14.51 x for FY18E.
  • Price to Book Value of the stock is expected to be at 3.43 x and 3.04 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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