Sintex Industries - March 2013 Results Preview - Motilal Oswal

- We expect Sintex Industries' 4QFY13 revenues to grow 23% YoY to INR12.6b, EBITDA 24% to INR2b and Adjusted PAT to 7% to INR970m. We believe the growth is broadly attributable to the weaker base in 4QFY12.

- Monolithic segment to post flattish YoY growth, with overall FY13 revenue of INR10.9b and margins of 16% (4QFY13) and 17.5% (FY13). It is likely to complete two more challenging sites by 4QFY13, taking the number of delayed sites to two (from seven at the beginning of the year). The process would steadily improve monolithic business' margins.

- Prefab is estimated to post 12% YoY growth in 4QFY13E (25% in FY13).

- Overseas, the automobile vertical is yet to show signs of an improvement; but management expects 10-11% full year sales growth for overseas composites business on the back of electrical and medical imaging segment. Domestic custom molding is estimated to grow by 19.5% in FY13E (full year) and 33% YoY in 4QFY13E on a low base.

- The stock trades at FY15E P/E of 2.9x and EV/EBITDA of 2.7x. We value Sintex at INR79 (post dilution).

Source : Equity Bulls

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