Piramal Glass - Forex loss hits bottomline - Emkay

Reco: BUY
CMP: Rs 93
Target Price: Rs 145

- Revenues above est. at Rs 4.2bn, up 28% yoy, EBIDTA at Rs 610mn, down 33% yoy due to forex loss of Rs 252mn vs gain of Rs 110mn. APAT below est. at Rs 43mn, down 81% yoy

- Demand moderation in USA premium C&P, but Europe C&P grows at healthy 30% yoy. Mass grows 28% led by new capacity, while 11% growth in SL drives SF&B segment

- Yields improve in new facility, but yet to achieve peak stabilization and optimal product mix. Expect yields to rise, plant stabilization and better product mix in ensuing quarters

- Cut FY13E/FY14E earnings est. by 16%/8% due to gradual stability in new facility and forex loss. Yields to improve in ensuing quarters. Maintain BUY with PT of Rs145/Share

Source : Equity Bulls

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