Result Update: Asian Granito India Ltd - BUY - TP Rs.705 - Kotak

Asian Granito revenues for Q3FY18 were largely in line with our estimates. Decline in average tile realizations was compensated by incremental volumes. Margins also witnessed a slight decline due to lower realization and higher power costs. Net profit performance was impacted by higher interest expense. We maintain our estimates and also introduce FY20 estimates. Volumes are likely to pick up now after GST rate on tiles has been reduced from 28% to 18%. Further uptick is likely to come once E-way bill gets implemented. We remain positive on the company and roll forward our target on FY20 estimates. We arrive at a revised price target of Rs 705 on 22x FY20 estimated earnings. (Rs 603 on FY19 estimates).

Shares of ASIAN GRANITO INDIA LTD. was last trading in BSE at Rs.515.65 as compared to the previous close of Rs. 533.75. The total number of shares traded during the day was 6644 in over 293 trades.

The stock hit an intraday high of Rs. 536 and intraday low of 512.25. The net turnover during the day was Rs. 3498476.

Source : Equity Bulls

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