Maintain Buy on Hyderabad Industries - Sunidhi

Q4FY12/FY12 Results: During Q4FY12, sales rose 29.8% to Rs.248.6 crore and net profit by 71.4% to Rs.18.0 crore. (YoY). OPM and NPM stood at 13.5% and 7.2% compared to 10.9% and 5.5% respectively in Q4FY11. EPS for Q4FY12 stands at Rs.24.0 Vs Rs.14 in Q4FY11.

During FY12, sales advanced by 18.4% to Rs.857.8 crore and net profit rose by 19.8% to Rs.60.6 crore. OP and NP margin stood at 13.5% and 7.1% against 13.4% and 7.0% respectively in the corresponding period last year.

EPS for FY12 stood at Rs.81.1.The DER as at FY12 stood at 0.21:1 (0.29:1) whereas the value of the net block stood at Rs.326.4 crore (Rs.289.9 crore).

Valuation & Recommendation: At the CMP of Rs.381, the share is trading at a P/E of 4.1x on FY12E and 3.5x on FY13E. We recommend BUY with an increased price target of Rs.510 in the medium-to-long term.

Source : Equity Bulls

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