Piramal Glass Ltd - Sub-optimal stabilization of new facility impacts PAT - Emkay

Reco: BUY
CMP: Rs 98
Target Price: Rs 155

- Revenues in-line with est at Rs 3.8bn, up 19% yoy, EBIDTA at Rs 813mn, flat yoy and APAT below est at Rs 74mn, down 74% yoy led by fixed cost of new capacity & furnace relining.

- Growth moderates with premium C&P growing at 20% yoy led by lower off-take in USA . SF&B growth also tapers to 19% yoy due to sales deferral in US & product mix change.

- 160TPD capacity operational, but still at stabilization stage and suboptimal product mix. Expect gradual improvement in utilisation over ensuing quarters.

- Revise FY13E/FY14E earnings estimates down by 10%/2% considering gradual stabilization in the new facility. Maintain BUY with target price of Rs155/Sharex.

Source : Equity Bulls

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