My Application Form Status

Check the status of your application form with Angel Broking.
  • Companies
  • Everything else
Search

Garware-Wall Ropes Ltd Research Report - 21st Jan 2016

Miscellaneous | Published on Nov 05th 2015

IT

Garware Wall Ropes (GWRL)s 2QFY2016 results outperformed our estimates on the bottom-line front. The companys top-line for the quarter grew by a subdued 6% yoy. On the operating front, the company reported margin improvement, primarily on account of lower raw material costs. Further, on the bottom-line front, the company reported strong growth on account of a favorable operating performance and lower interest costs. Subdued top-line growth: The company’s top-line grew by ~6% yoy to ~Rs214cr (which is below our estimates of ~ Rs232cr), mainly due to lower growth in the Synthetic Cordage segment (of ~3% to Rs180cr). The Fibre & Industrial Products segment reported a strong growth of ~14% to Rs39cr. PAT grew ~42% yoy: The reported net profit grew by ~42% yoy to ~Rs15.4cr (our estimate was of ~Rs12.7cr) on account of falling material prices and lower interest costs with the company having repaid a significant amount of its debt in FY2015. Outlook and valuation: Going ahead, we expect GWRL to report a top-line CAGR of ~11% over FY2015-17E to ~Rs967cr owing to strong domestic as well as export sales. On the bottom-line front, we expect the company to report ~20% CAGR over FY2015-17E on account of expansion in operating margin (due to lower material prices and higher exports, which is a high margin business). Further, the company has reduced its debt significantly which will lead to cost savings. Hence, we recommend a Buy rating on the stock with a target price of Rs423.

Download Full Report

Accumulate

CMP 345
Target Price 423
Investment Period12 Months

Stock Info

MCAP BSE (Rs in Cr)1,373.32
MCAP NSE (Rs in Cr)1,378.13
P/E (x)17.68
EPS (Rs.)35.49
BV (Rs.)188.15
Div Yield (%)0.53
FV (Rs.)10.00
P/BV (x)3.34
EV/Sales (x)1.62
EV/EBITDA (x)12.09

Shareholding Pattern (%)

Promoter51.0
Public & Others33.0
Foreign8.0
Corporate6.0
Institution2.0
Grand Total100.0

Trade Securely

AngelEye

Portfolio Tracking & Trading Application View Demo