2025-11-20 21:09:01
Latest Post
Hester Biosciences Ltd appoints Mr. Ashish Desai as CFO and KMP
WABAG secures ADB funded 'Large' DBO order from Melamchi Water Supply Development Board, Government of Nepal
Brightcom Group Ltd updates on Strategic Partnership with Dailymotion Advertising
ACME Solar commissions second phase of additional 16 MW of its 100 MW wind power project in Gujarat
Godrej Properties adds INR 2,400 crore additional revenue potential to its recent acquisition on Sarjapur Road, Bengaluru
Research
Graphite India - 4QFY2012 Result Update - Angel Broking
Posted On : 2012-05-15 21:48:15( TIMEZONE : IST )
For 4QFY2012, Graphite India's (GIL) top line came in at Rs.452cr, registering 48.6% yoy growth. EBITDA margin contracted by 142bp yoy to 18.3%. EBITDA increased by 37.9% yoy to Rs.83cr. PAT increased by 131% to Rs.103cr on the back of higher revenue, forex gain and higher other income. Going ahead, the scenario is positive for the company, as it has started steel production again in June 2011 (post the shutdown) and is showing a strong rising trend. We maintain our Buy view on the stock.
Strong sales growth momentum continues: GIL reported strong sales growth in 4QFY2012. The company's revenue increased by 48.6% yoy to Rs.452cr. The graphite segment, which contributed around 85.3% to the company's total revenue, registered strong growth of 52.9% yoy to Rs.386cr, while the steel segment managed a whopping 150% yoy increase to Rs.24cr. The company's OPM declined by 142bp yoy to 18.3% due to increased raw-material cost, which grew to 51.2% in 4QFY2012 as a percentage of sales vs. 50.5% in 4QFY2011. PAT increased by 131% yoy to Rs.103cr, largely due to forex gain of Rs.30cr and other income of Rs.22cr during the quarter. Adjusted for other income and forex gain, PAT increased by 77.7% yoy. PAT margin also expanded significantly by 813bp yoy to 22.8% due to the above reason and prior-period tax adjustments resulting in lower tax rate. Tax rate declined to 12.5% of PBT in 4QFY2012 vs. 29.3% of PBT in 4QFY2011.
Outlook and valuation: We remain positive on the prospects of GIL, owing to strong demand from steel manufacturers. Realizations are also set to increase, as global players have hiked their prices recently. We expect GIL to post a 12.2% CAGR in revenue over FY2012-14E and PAT to witness a 13.6% CAGR over the same period. At the CMP, the stock is trading at attractive valuations of 0.9x its FY2014E BV, respectively. We have valued the stock at its five-year median of 1.2x one-year forward book value to arrive at a target price of Rs.124. We maintain our Buy recommendation on the stock.