Dear All,
Forwarding you the Result Update on United Phosphorus for 4QFY2011 with a Buy recommendation and a Target Price of `207 (12 months).
For 4QFY2011, United Phosphorus (UPL) reporpted higher-than-estimated results. Total revenue grew by 26.9% yoy to `1,857cr. Net PAT grew by 14.1% to `179cr. At `152, the stock is quoting at attractive valuations of 9.9x FY2012E EPS and 8.8x FY2013E EPS. Hence, we maintain our Buy recommendation on the stock.
Strong revenue growth: UPL reported strong revenue growth of 26.9% yoy to `1,857cr, ahead of our estimates. Robust growth was supported by a 49% yoy increase in India business and 20% growth in international business. Europe, UPL’s key market, witnessed a 25% decline in sales, while US and RoW posted robust growth of 25% and 59%, respectively. Revenue growth was impacted by 1% due to the unfavourable exchange variance. However, volumes continued to be strong, moving up by 20% in 4QFY2011.
Outlook and valuation: We expect UPL to post a CAGR of 9% and 18% in sales and PAT over FY2011–13, respectively. At the current valuation of 9.9x FY2012E EPS and 8.8x FY2013E EPS, the stock is attractively valued. Hence, we maintain our Buy recommendation on the stock with a revised target price of `207 (`198).
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: 6864 / 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. 6864,6865
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.
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