Forwarding you the Result Update on MRF for 4QSY2012 with a Buy recommendation and a Target Price of Rs.13416 (12 months).
For 4QSY2012, MRF reported a revenue growth of 14.3% yoy to `2,994cr from `2,620cr
in 4QSY2011. Fall in rubber prices led to a 477bp expansion of EBITDA
margin to 11.7% on a yoy
basis. However, net profit for the quarter is not comparable on a yoy
basis since 4QSY2011 incorporates adjustment for change in method of
depreciation. We expect MRF’s revenue to post a 10.2% CAGR over SY2012-14E to `14,405cr,
while EBITDA margin is expected to remain stable at 10.6% owing to
expected stability in rubber prices. Consequently the net profit is
expected to post an 11.5% CAGR over SY2012-14E to `711cr.
At the current market price, MRF is trading at a PE of 6.5x its SY2014E
earnings and P/BV of 1.1x for SY2014E. As we rollover to SY2014, we maintain our Buy recommendation on the stock with a revised target price of `13,416, based on a target P/E of 8x for SY2014E earnings.
Kindly click on the following link to view the Report.
No comments:
Post a Comment