Styrolution ABS Ltd. - Q1CY13 Result Review - Angel Broking

Styrolution ABS Ltd. (Styrolution) reported poor set of numbers for 1QCY2013. Top line growth for the quarter was flat at 2.6% yoy to Rs. 242cr, 6.9% lower than our estimate of Rs. 260cr. EBITDA was lower by 1.0% yoy to Rs. 23.4cr, 6.13% lower than our expectation owing to poor top-line growth. EBITDA margin for the quarter remained constant yoy at 9.7%, better than our estimate of 9.6%. The company reported net profit of Rs. 15cr, 15% lower than our estimates of Rs. 18cr.

As we rollover to CY2014E we continue to maintain our Buy recommendation on the stock with the revised target price of Rs. 617, based on target PE of 14x.

Source : Equity Bulls

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