2025-04-11 08:48:31
Latest Post
Evoq Remedies Ltd Q4FY25 net profit at Rs. 1.71 crore
Federal Bank appoints Virat Sunil Diwanji as National Head - Consumer Banking
HDFC Securities Launches Advanced F&O Dashboard on HDFC Sky
CPCL and HMA launch M-Cup distribution drive under Project THINKAL
Spice Money Surpasses ₹11,485 Cr in Customer GTV in March 2025
Research
Garware Wall Ropes - 4QFY2016 Result Update - Angel Broking
Posted On : 2016-06-02 10:56:35( TIMEZONE : IST )
Garware Wall Ropes (GWRL)' 4QFY2016 results outperformed our estimates on the bottom-line front. The company's top-line for the quarter de-grew by ~4% yoy. On the operating front, the company reported margin improvement, primarily on account of lower raw material costs. Further, on the bottom-line front, the company reported strong growth on account of a favorable operating performance.
Volumes grew but price cut dragged the overall top-line: The company's top-line de-grew by ~4% yoy to Rs. 188cr (below our estimate of Rs. 205cr). The revenue underperformance was mainly due to lower growth of 1% yoy to Rs. 153cr in the Synthetic cordage segment and de-growth of ~22% yoy to Rs. 40cr in the Fibre & Industrial products segment.
Strong operating performance boosts profitability: On the operating front, the company reported margin improvement (up by 356bp yoy to 15.1%), primarily on account of lower raw material costs by 981bp yoy as a percentage of sales as prices of its key raw materials, ie high density polyethylene, polyethylene etc declined during the quarter. The reported net profit grew by ~41% yoy to Rs. 17.3cr (outperforming our estimate of Rs. 12cr) on account of the strong operating performance.
Outlook and valuation: Going ahead, we expect GWRL to report a healthy topline in anticipation of strong domestic as well as export sales. On the domestic front, we expect demand to pick up with an expected growth in the agriculture and fisheries segments in the country. Further, we expect the company to continue reporting strong numbers on back of higher demand for aquaculture and sports products globally and also with the company tapping new geographies. Hence, we recommend a Buy rating on the stock with a target price of Rs. 460.
Shares of GARWARE-WALL ROPES LTD. was last trading in BSE at Rs.362.5 as compared to the previous close of Rs. 356.1. The total number of shares traded during the day was 2407 in over 84 trades.
The stock hit an intraday high of Rs. 362.75 and intraday low of 354. The net turnover during the day was Rs. 864766.
