“Sintex Industries' (SINT) stock has corrected by 25% over the past one week owing to concerns pertaining to (i) FCCB exposure of SINT to the tune of USD 225mn (USD115mn utilized) and depreciation of Rupee v/s USD by 10%.....
PINC Research is bullish on Sintex Industries (SINT) and has recommended buy rating on the stock with a target price of Rs 240 in its October 4, 2011 research report.
“Sintex Industries' (SINT) stock has corrected by 25% over the past one week owing to concerns pertaining to (i) FCCB exposure of SINT to the tune of USD 225mn (USD115mn utilized) and depreciation of Rupee v/s USD by 10% (See chart on next pg) and (ii) Slowdown in the US and European markets may lead to reduced demand for the overseas subsidiaries like Nief and Wausaukee. We met the management of SINT to understand these concerns. Post our meeting we believe that the stock correction is overdone and continue to remain positive on the stock taking into account: (a) we expect MTM loss of ~Rs 450-500 mn to hit the bottom-line in the Q2FY12 due to the USD 115 mn FCCB loan (utilized); (b) Strong growth in monolithic segment with continuing orders from housing board, railways and defence; (c) Government allowing prefab in tribal areas; an opportunity of Rs 30 bn. Besides, new plant in Dadri saving cost and bringing in incremental revenues from UP (d) Bright Autoplast may improve turnover margins further through synergies. The stock is attractively poised at current levels and we reiterate our 'BUY' recommendation on the stock with a target price of Rs 240,” says PINC Research report.
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more infoPINC Research is bullish on Sintex Industries (SINT) and has recommended buy rating on the stock with a target price of Rs 240 in its October 4, 2011 research report.
“Sintex Industries' (SINT) stock has corrected by 25% over the past one week owing to concerns pertaining to (i) FCCB exposure of SINT to the tune of USD 225mn (USD115mn utilized) and depreciation of Rupee v/s USD by 10% (See chart on next pg) and (ii) Slowdown in the US and European markets may lead to reduced demand for the overseas subsidiaries like Nief and Wausaukee. We met the management of SINT to understand these concerns. Post our meeting we believe that the stock correction is overdone and continue to remain positive on the stock taking into account: (a) we expect MTM loss of ~Rs 450-500 mn to hit the bottom-line in the Q2FY12 due to the USD 115 mn FCCB loan (utilized); (b) Strong growth in monolithic segment with continuing orders from housing board, railways and defence; (c) Government allowing prefab in tribal areas; an opportunity of Rs 30 bn. Besides, new plant in Dadri saving cost and bringing in incremental revenues from UP (d) Bright Autoplast may improve turnover margins further through synergies. The stock is attractively poised at current levels and we reiterate our 'BUY' recommendation on the stock with a target price of Rs 240,” says PINC Research report.
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