Sintex Industries - Q4FY13 Result - Nirmal Bang

- Sintex Industries posted net revenue of Rs14,013mn for 4QFY13, up 36.9% YoY, topping our estimates by 5.5% due to 31.0%/54.4% growth in pre-fab/domestic custom moulding divisions, respectively.

- Following lower margins in monolithic and overseas custom moulding divisions, operating margin fell 215bps to 13.5%, 182bps below our estimates.

- Due to tax write-back and higher other income, adjusted net profit grew 79.1% at Rs1,626mn.

- We have introduced FY15E numbers and retained our target price of Rs63, valuing SIL at 4xFY15E EV/EBITDA (from 5xFY14E EV/EBITDA earlier). Following the steep fall in stock price, we have upgraded our rating on it to Buy (from Sell earlier).

Source : Equity Bulls

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