Steel City Securities Limited

Transcription

1 Steel City Securities Limited Essel Propack: Expects a double digit growth in FY 19 with better margins Aims to grow with strong double digit growth in FY 19 with better margin outlook. Mission 2020 is intact in terms of sales, margin and ROCE front. Tax rate will be around 33-34% for FY 19 Key Highlights Conference Call Consolidated net sales for FY 18, grew by around 5.3% in FY 18. Excluding India, the rest of the world net sales grew by around 7.2%. India suffered from early transit to GST and later changes made in GST in Nov 18. However GST issues are now stabilizing and should see the benefits in coming quarters. Mar 18 quarter saw lower offtake due to Indian beauty and cosmetics and Pharma categories that are linked to GST which show some inventory corrections. Ebidta margin in Mar 18 quarter was affected due to product mix and inventory corrections in US and India. Expects a double digit growth in Indian operations driven by good demand in FMCG and a steady flow of operations post GST disruptions in the previous year. Strong traction is already visible in non oral category demand in FMCG space.

2 In FY 18, EU performed well with net sales growth of around 18% driven by German operations. Confident of a continued double digit growth in EU operations going forward. The company secured new businesses in US. Colombia operations clearly showing signs of recovery. Overall US should also do well in FY 19. The company is not worried on global trade war. If at all the company will benefit, as it has operations in US and Mexico and any increase in manufacturing activities in US and lower Chinese imports in US, will help the company. Also the company is not worried on currency depreciation as its net exporter from India. However a sudden and sharp forex fluctuations across the globe will affect the company. What worries the company is the pace of changes that are brought into clients own business planning due to Ecommerce and digitalization. The client itself sometimes gets surprised on its lower sales (below its expectations and targets) which in turn affect the company. In FY 19, Essel aims to work further closely with its customers and monitor events to the extent possible. Not worried on higher crude prices, as all the contracts have a pass through clause. But like forex, any sharp increase in crude oil price in short term can lead to some short-term impact. The company also highlighted the fact that as long as there is across the globe shift from consumption of plastic to laminated tubes, the company is not worried. So even if the globe may not grow, the shift per se will drive the growth for the company. FY 18 saw debt reduction of Rs 140 crore after incurring capex of around Rs 120 crore. Aims to continue to reduce debt every year.

3 Year EPS-Unit Curr Year Book Value-Unit Curr(Adjusted) Cash Flow per Share Cash Flow per Share

4 Essel Propack Ltd: Price realted Informations Price Date P/E Retn 1mth 52 W High Market Price 270 P/BV 6.48 Retn 3 mth 52 W Low Market Capitalization Yield% 0.89 Retn 6 mth 3.58 EnterPrise Value FV 2 Retn 12 mth ANNUAL Rs. Crore (Non-Annualised) Year end Mkt Cap Year end P/E Price High Price Low PE at High PE at Low PSR at High PSR at Low P/Dividend at High P/Dividend at Low P/BV at High P/BV at Low EV/EBITDA at High EV/EBITDA at Low Mcap High Mcap Low No of Shares O/S EPS DPS BV SPS FCFS Dupont Analysis AVERAGE EBIDT/Sales % Sales / Total Assets EBIDT/ Total Assets% PAT/EBIDT % Net Assets/ Net Worth ROE%

5 Income CAGR Sales Other income Change in stocks Expenditure Raw materials, stores, etc Wages & salaries Energy (power & fuel) Indirect taxes (excise, etc.) Distribution expenses Others Profits / losses CAGR PBDIT Financial charges (incl. lease rent) PBDT Depreciation PBT Tax provision PAT Appropriation of profits Dividends Retained earnings Liabilities CAGR Paid-up Equity Capital Reserves & Surplus Net Worth Total Borrowings Long Term Borrowings Assets CAGR Gross Fixed Assets Net Fixed Assets Investments NCA (ex. Cash) Cash Capital Employed

6 Growth (%) Gross sales Cost of production PBDIT PAT GFA Total assets Margins ratios (%) PBDIT (NNRT) / sales PBDT (NNRT) / sales PAT (NNRT) / sales PBDIT (NNRT) / net sales PBDT (NNRT) / net sales PAT (NNRT) / net sales Returns ratios (%) PAT (NNRT) / net worth PAT (NNRT) / total assets PBIT (NNRT) / capital employed PAT (NNRT) / capital employed Liquidity ratios (times) Long term debt / equity Total debt / equity Current ratio Interest cover Debtors Velocity (Days) Creditors Velocity (Days) Assets Utilisation Ratio (times) Value of Output/Total Assets Value of Output/Gross Block Inventories at year end Inventory as a % of Sales Receivables Receivables as a % of Sales

7 Free Cash Flows Cash Flows from Operations Working Capital Change Capital Expenditure Free Cash Flows to Equity Net Profits Free Cash Flows/ Net Profits EBIT(1-tax rate) Depreciation Working Capital Change Capital Expenditure Free Cash Flows to the Firm Consolidated Financials Sales PBIDT PBT PAT Equity Borrowings Total Assets QUARTERELY Gross Sales Net sales Other income Total Income

8 Total Expenditure PBIDT Interest PBDT Depreciation Tax Deferred Tax Reported Profit After Tax Adjusted Profit After Extra-ordinary item EPS (Unit Curr.) Calculated EPS (Unit Curr.) Calculated EPS (Ann.) (Unit Curr.) Equity Face Value PBIDTM(%) PBDTM(%) PATM(%) Growth (%) Sales Total expenses PBDIT PBDT PAT Adjusted EPS

9 Essel Propack Ltd Financial Performance (Rs.Cr) Year End Equity Net Worth Enterprise Value Capital Employed Gross Block Year End Sales Other Income PBIDT PBDT PBIT PBT RPAT (after Minority Int) APAT CP Rev. Earnings in FE Rev. Expenses in FE Book Value EPS Dividend (%) Payout (%) Ratio Analysis Year End Debt-Equity Current Ratio Invtry Turnover Debtors Turnover Interest Cover PBIDTM (%) PBDTM (%) APATM (%) ROCE (%) RONW (%) EV/EBIDTA

10 Rate of Growth (%) Year End Net Worth Sales PAT M Cap MARKET DATA (AS ON 27-Apr-2018) Price (Rs) W H/L(Rs) 317 / 233 Lat. P/E Lat. EPS(Rs) Mkt. Cap.(Rs Cr) Lat.Eqty (Rs Cr) Lat. BV(Rs) Div. Yield (%) 0.89 Lat. Face Value 2 Beta-Sensex 0.96 Share Price Graph Quarterly Performance (Rs Cr) Period Ended Var. (%) Sales Other Income PBIDT PBDT PBIT PBT RPAT Extra-ord. Items APAT CP

11 Share Holding Pattern(AS ON 31-Mar-2018) Shares (%) Foreign Institutions Non Promoter Corp. Hold Promoters Public & Others Totals Source: Capitaline Database Disclaimer: Capitaline Database has taken due care and caution in compilation of data.however, Capitaline Database makes no warranty that the service will meet all your requirements, the service will be uninterrupted, timely, complete, error-free, or the results that may be obtained from the use of the service will be accurate. Analyst Disclaimer: Disclaimer: Neither The Analyst nor M/S. steel city securities Ltd Accept any liability whatsoever nor do they accept responsibility for any financial consequences arising the use of the research or information provided herein.