For 3QFY2019, the company posted robust sales growth of 16.1% yoy to end the
period at `24,120cr On the Operating front, EBITDA margins came in at 26.0% v/s
25.2% in 3QFY2018. However, inspite of the same PAT came in at `2,385cr v/s.
`2,361cr in 3QFY2018, a rise of 1.0% yoy.; mainly on back of as higher working
capital which impacted the company’s other income and rise in interest expenses.
We maintain our Buy.

Outlook and valuation: Over FY2018-20, the company is expected to post a CAGR
of 10.5% and 10.2% in the sales and net profit respectively. At current price, the
stock trades at 1.0xBV FY2019E; which implies a very low ~14-15% business ROE’s
and low growth prospects for the company over a long period.

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