Dolat Capital is bullish on Sintex Industries and has recommended buy rating on the stock with a target of Rs 163 in its October 12, 2011 research report.
“Sintex Industries has delivered better-than-expected operating performance in the quarter ended September 2011 (Q2). While net revenues were up 25% at Rs 11.54bn (Dolat est: Rs 10.95bn), EBIDTA grew 19% to Rs 2.04bn (Dolat est: Rs 1.94bn). EBIDTA margins were in line with expectations at 17.7%. PAT, on the other hand, was down 61% at Rs 388mn considerably lower than our expectation of Rs 704mn largely on account of higher a) MTM provisioning on outstanding FCCBs b) tax out go and c) interest costs.”
“During the quarter under review, Sintex reported net sales at Rs 11.54bn up 25% YoY on the back of healthy growth from all three segments. While custom moulding (46% of net revenues) grew 29%, building product (44% of net revenues) and textiles segment (10% of net revenues) grew 22.5% and 20% respectively. Sequentially too, overall net revenues grew 4%, led by the building product segment that grew 6.8%. EBIDTA grew 19% to Rs 2.04bn as against Rs 1.72bn in Q2 FY11. EBITDA margins were in line with our estimates at 17.7% down 90bps YoY. EBIDTA margins in the monolithic and prefabs space remained healthy at over 20% while custom moulding recorded margins of around 15%. The textile segment recorded 22% margins.”
“Sintex has reported MTM loss on FCCBs of Rs 596mn as against a profit of Rs 203mn in Q2 FY11. Of the USD 225mn worth of FCCBs issued in FY08, USD 110mn was kept in the US account and the rest of the utilised amount (USD 115mn) remains exposed to currency fluctuation risks. This has resulted in a translation loss of Rs 596mn for the quarter, wherein the rupee depreciated by over 10% to the dollar. Higher tax outgo as well as higher interest costs also impacted profitability. PAT (adjusted for MTM losses on FCCBs), however, grew 23% YoY to Rs 984 mn. Buy the stock for target price of Rs 163,” says Dolat Capital research report
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“Sintex Industries has delivered better-than-expected operating performance in the quarter ended September 2011 (Q2). While net revenues were up 25% at Rs 11.54bn (Dolat est: Rs 10.95bn), EBIDTA grew 19% to Rs 2.04bn (Dolat est: Rs 1.94bn). EBIDTA margins were in line with expectations at 17.7%. PAT, on the other hand, was down 61% at Rs 388mn considerably lower than our expectation of Rs 704mn largely on account of higher a) MTM provisioning on outstanding FCCBs b) tax out go and c) interest costs.”
“During the quarter under review, Sintex reported net sales at Rs 11.54bn up 25% YoY on the back of healthy growth from all three segments. While custom moulding (46% of net revenues) grew 29%, building product (44% of net revenues) and textiles segment (10% of net revenues) grew 22.5% and 20% respectively. Sequentially too, overall net revenues grew 4%, led by the building product segment that grew 6.8%. EBIDTA grew 19% to Rs 2.04bn as against Rs 1.72bn in Q2 FY11. EBITDA margins were in line with our estimates at 17.7% down 90bps YoY. EBIDTA margins in the monolithic and prefabs space remained healthy at over 20% while custom moulding recorded margins of around 15%. The textile segment recorded 22% margins.”
“Sintex has reported MTM loss on FCCBs of Rs 596mn as against a profit of Rs 203mn in Q2 FY11. Of the USD 225mn worth of FCCBs issued in FY08, USD 110mn was kept in the US account and the rest of the utilised amount (USD 115mn) remains exposed to currency fluctuation risks. This has resulted in a translation loss of Rs 596mn for the quarter, wherein the rupee depreciated by over 10% to the dollar. Higher tax outgo as well as higher interest costs also impacted profitability. PAT (adjusted for MTM losses on FCCBs), however, grew 23% YoY to Rs 984 mn. Buy the stock for target price of Rs 163,” says Dolat Capital research report
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