Page Industries - 4QFY2013 Result Review - Angel Broking

For 4QFY2013, Page Industries healthy set of numbers which were in-line with our estimates. The company's top line grew by 35.5% yoy to Rs. 209cr, marginally above our estimate of Rs. 201cr for the quarter. The EBITDA margin for the quarter expanded by 190bp yoy and came in at 17.6%, mainly because of lower other expense as a percent of net sales, in-line with our estimate of 17.7%. Consequently, the company reported a profit of Rs. 24cr, 38.5% higher yoy from Rs. 17cr in 3QFY2012, in-line with our estimate.

For FY2013, the company's revenue grew by 26.3% to Rs. 863cr with an EBITDA margin of 19.0%. The profit for the year grew by 24.8% to Rs. 113cr, in-line with our estimate.

The company paid a total dividend of Rs. 50 per share for FY2013. Given the huge market size, Page's predominant position, strong brand recall and capacity expansion plans for next four years to cater to the increasing demand; we remain positive on the company's growth outlook. At the CMP of Rs. 4,265, the stock is trading at a PE of 27.5x FY2015E earning.

We recommend Neutral view on the stock due to the high valuation.

Source : Equity Bulls

Keywords