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 | |
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