Views on Siyaram Silk Mills 4QFY2014 results - Angel Broking

Views of Ms. Tejashwini Kumari (Equity Research Associates-Mid Caps, Angel Broking) on Siyaram Silk Mills 4QFY2014 results:

"Siyaram Silk Mills (SSM) reported strong set of numbers, way ahead than our estimates for 4QFY2014. The company's top line for the quarter grew substantially by 31.8% yoy to Rs. 406cr, against our estimate of Rs. 319cr. The operating margin was almost flat yoy at 10.6%, and marginally higher than our estimate of 10.3%, mainly because of the higher raw material cost as a percent of net sales. Interest and tax outgo for the quarter was Rs. 8cr and Rs. 11cr respectively. On account of strong revenue growth, the net profit for the quarter grew at 42.8% yoy and came in at Rs. 20cr, 22.7% higher than our estimate of Rs. 16cr.

In order to improve the demand scenario, SSML was in process of launching new designs and attractive schemes, which we assume has helped in driving the sales. We continue to maintain our Buy recommendation on the stock."

Source : Equity Bulls

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