Views on Finolex Cables Ltd 3QFY2014 results - Angel Broking

Views on Finolex Cables Ltd 3QFY2014 results - Angel Broking

"Finolex Cables Ltd. (FCL) reported mixed set of numbers for 3QFY2014. Top-line reported 5.4% yoy growth to Rs. 563cr, 7.02% lower than our estimate of Rs. 606cr. Electrical cables and copper rods segments grew by 0.3% and 170.3% respectively; however communications cables segment dip by 13.4% in the quarter compared to same quarter previous year.

EBITDA for the quarter grew marginally by 3.1% while EBITDA margin contracted by 17bp on a yoy basis to 7.9%. For electrical cables, communications cable segment and copper rods segment, EBIT margin dip by 103bp, 378bp and 167bp yoy to 9.5%, 8.0% and 2.4% respectively. Subsequently, net profit declined by 7.0% yoy to Rs. 24.5cr, better than our estimate of Rs. 20.1cr while margins stood at 4.3%, lower by 58bp yoy. As we rollover to FY2016E, we maintain our Accumulate rating on the stock with revised target price of Rs. 96 based on target PE of 7x for FY2016E earnings."

Finolex Cables Ltd. (CMP: Rs. 87 /TP: Rs. 96/ Upside: 10.6%)

Source : Equity Bulls

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