Fwd: Sintex Industries Q2FY12 Result Update; APAT miss due to monolithic and lower other income; Buy; Target: Rs 150

1 view
Skip to first unread message

Deepak Vaishnav

unread,
Oct 29, 2011, 3:17:51 AM10/29/11
to

 

Sintex Industries Ltd

APAT miss due to monolithic and lower other income

 

BUY

 

CMP: Rs 118                                       Target Price: Rs 150

n     Sintex’s 2Q12 APAT was lower than est. due to lower monolithic execution (16% growth) and lower other income (by about Rs80mn); also the forex loss was higher at Rs596mn vs. est. of Rs450mn

n     Mgmt in the concall sort of maintained its FY12E guidance of 20-25% revenue growth, EBITDA margins at FY11 level and APAT growth of 25-30%

n     Working capital cycle has increased; Capex figure as per balance sheet is about Rs3.1bn for 1H vs. our assumption of Rs3.2bn for full yr. We increase our FY12 capex to Rs5bn – leading to negative free cash flows in FY12  

n     Estimates cut by 10% for FY12/13E mainly driven by lower monolithic, higher capex. Current valuations pricing in negative free cash. Maintain buy with revised TP of Rs150/Share   

 

Regards,

Amit Golchha

Research Analyst | Emkay Global Financial Services Ltd. | www.emkayglobal.com | Email : amit.g...@emkayglobal.com 

Board No. : +91-22-66121212 | Extn. : 408 | DID : 66242408 | Mob : +919833357365 |

 

 


image002.gif
Sintex Industries Q2FY12 Result Update.pdf
Reply all
Reply to author
Forward
0 new messages