Dear All,
Forwarding you the Result Update on TIL for 4QFY2011 with a Buy recommendation and a Target Price of ` 757 (12 months).
TIL posted muted performance in FY2011. Total revenue came in at `1,381cr, up 30% yoy. However, EBITDA margin continued its downtrend and came in at 9.2%. Total PAT came in at `60cr, same as last year. We maintain Buy on the stock.
Capex on stream: TIL is setting up a new plant in Kharagpur, West Bengal. The company proposes to expand its capacity at a total planned capex of `300cr to be incurred over three phases. Under phase-1 of capacity addition, TIL spent `60cr in FY2011 and plans to spend the balance `140cr in FY2010. Given TIL’s comfortable debt:equity position of 0.5x at the end of FY2011, we believe it would be easy for the company to meet its capex requirement through internal accruals and debt.
Outlook and valuation: We expect TIL’s CMS and PSS divisions to revert to the high growth path, while the MHE division would continue to post healthy growth with the new plant coming on stream by July 2011. We have revised our earnings estimate upwards for FY2012 and FY2013 on account of better EBITDA margin in 4QFY2011 and FY2011. Overall, we estimate TIL to register a CAGR of 26% each in total revenue and PAT over FY2011–13. On the valuation front, at `468, TIL is trading at attractive valuation of 4.9x FY2013E earnings. Hence, we maintain our Buy view on the stock with revised a target price of `757 (`675).
Kindly click on the following link to view the Report.
If you have any further queries, feel free to call us on 022 39357600, Extn: 6865 or mail us at advisory@angelbroking.com
With best regards,
Fundamental Advisory Desk
Angel Broking
Akruti Star,6th Floor, Road No.7,MIDC, Andheri (E),Mumbai – 93.
Call : (91) (022) 39357600 Ext. 6865
Website : www.angelbroking.com
Disclaimer: Ours is an advisory role. The final decision and consequences based on our information is solely yours. Moreover, in keeping with regulatory guidelines, we do not guarantee any returns on investments. Prospective investors and others are cautioned that any forward-looking statements are not predictions and may be subject to change without notice.
No comments:
Post a Comment