Piramal Glass Ltd - Weak quarter, expect gradual pick up; Retain BUY - Emkay

Reco: BUY
CMP: Rs 97
Target Price: Rs 110

- Results operationally weak – Revenues at Rs 4.3bn, +11% yoy, EBIDTA at Rs 659mn, -19% yoy, EBIDTA margins down 580bps yoy to 15.4% and APAT Rs72.2mn, -3% yoy

- C&P grows 17% yoy, but product mix weakens. Premium C&P growth moderates to 10% yoy, while low-margin Mass C&P grows at 25% yoy

- Weaker product mix and higher operational costs of new facility dents EBIDTA margins by 580 bps to 15.4%

- Strong export revenues coupled with improving product mix and low base of FY13 to drive earnings performance in FY14E. Maintain BUY with target price of Rs 110/Share

Source : Equity Bulls

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