Shree Pushkar - Q4FY20 First Cut - ICICI Securities

(CMP: Rs. 93; MCap: Rs. 286 crore)

Below estimates across all parameters. Margins impacted on quarterly basis largely due to higher other cost.

Q4FY20 Earnings Summary

- Shree Pushkar reported fall in revenues primarily on account of overhaul at unit 1 along with fall in the realisation post decline in the RMAT prices. The revenues fell by 26.3% YoY to Rs. 86.7 crore, however it grew marginally by 1.2% QoQ

- OPM expanded by 340 bps YoY to 12.4% largely on account of lower raw material prices, resulting into EBITDA growth of 1.9% YoY to Rs. 10.8 crore. However on quarterly basis, OPM contracted by 500bps QoQ due to higher other cost

- Lower tax rate negated the impact of lower other income and assisted company to report bottom line growth of 47% YoY to Rs. 11.2 crore

- The company highlighted that they have been witnessing poor demand environment for their main product line such as dyes/dye intermediates, while fertilizer segment has been doing well. The management anticipates top line impact of 25-30% at group level in the coming quarter. The management expects situation to get ease from Q3FY21

Shares of Shree Pushkar Chemicals & Fertilisers Ltd was last trading in BSE at Rs.94.1 as compared to the previous close of Rs. 92. The total number of shares traded during the day was 12654 in over 392 trades.

The stock hit an intraday high of Rs. 94.1 and intraday low of 90.5. The net turnover during the day was Rs. 1167752.

Source : Equity Bulls

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