Buy Piramal Glass - Emkay

Reco: BUY
CMP: Rs 115
Target Price: Rs 155

Capacity relining impacts profitability

- Q2FY12 was below expectations - revenues grew 9.5% yoy to Rs 3.4bn, EBIDTA margins declined 170bps yoy to 21.4% and APAT de-grew by 19% to Rs 188mn.

- Relining in US & Indian furnace resulted in flat growth for C&P. Demand headwinds in Brazil and Turkey led to de-growth in Mass segment. Europe market remains healthy.

- Capacity expansion well on track; major relining of capacities completed. FY13E to witness healthy revenue growth aided by expanded capacities.

- Marginal revision in earnings, FY12E revised downwards by 4% to Rs 12.7 and FY13E by 2% to Rs 17.1. Maintain BUY with revise target price of Rs155/Share.

Source : Equity Bulls

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