Piramal Glass Ltd - No improvement yet - Emkay

Reco: BUY
CMP: Rs 93
Target Price: Rs 110

- Results below estimates - Revenues at Rs 4.7bn, +11% yoy, EBIDTA at Rs 718mn, 18% yoy, EBIDTA margins up 90bps yoy to 15.4% and APAT Rs86.5mn, 101% yoy

- Cosmetics & perfumery (C&P) growth slowed to 13% yoy with premium segment growing at 12% yoy, while mass segment posted 13% yoy growth

- EBIDTA margins improve yoy, but remain operationally weak due to weaker product mix and higher fixed costs in new facility

- Earnings cut by 31%/21% in FY14E/FY15E given the continued sluggishness in market and impact on product mix. Retain BUY with target price of Rs 110/Share.

Source : Equity Bulls

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