Essel Propack |
Margins continue to disappoint, Maintain BUY |
BUY
CMP: Rs 37 Target Price: Rs 54
n Essel Propack (EPL) Q2FY12 was below expectations - Revenues up 7.5% yoy at Rs 4.0bn, EBIDTA down 7.6% at Rs 631mn and APAT down 32% at Rs 91mn
n All regions report steady growth led by AMESA and Europe, except EAP, which countered short term volume impact with lower offtake from a large client
n Ebidta margins continues to decline, down 260 bps yoy to 15.9% - impacted by input cost pressure and delayed price pass through
n Regaining CY06 profits postponed to FY13E. Revised earnings downwards by 19% and 15% to Rs 3.4/Share in FY12E and Rs 5.3/Share in FY13E
Regards,
Pritesh Chheda |
Research Analyst | Emkay Global Financial Services Ltd. | www.emkayglobal.com | Email: pritesh...@emkayglobal.com |
Board No. : +91- 22- 6612 1212 | Extn. : 273 | DID : +91-22- 6612 1273 | Mob : +91 98208 07241 |
Prashant Kutty |
Research Analyst | Emkay Global Financial Services Ltd. | www.emkayglobal.com | Email : prashan...@emkayglobal.com |
Board No. : +91-22-6612 1212 | Extn. : 341 | DID : 6612 1341 | Mob : +919819081715 |
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