JUST TO ADD TO COMMNMAN'S EFFORTS.

PI INDS Q1 FY 12 RESULTS

PERIOD	Q1 FY 12	Q1 FY 11	FY 11	FY 10
SALES	222	139	764	567
OP	35.6	18.72	109	75
PBIT	33.97	12.35	91	57
NP	27*	9.76	65	42

 

*NET PROFIT FOR THE QUARTER IS 48 CRORES (WHICH INCLUDES EXTRA ORDINARY GAIN OF 30 CRORES – ADJUSTED FOR TAX PAID AT 30% THIS COMES TO AROUND 21 CRORES) AND HENCE NET PROFIT IS AROUND 27 CRORES (ADJUSTED FOR EXTRAORDINARY) AGAINST 9.76 CRORES IN Q1 FY 11.

CURRENT MARKET CAP IS AROUND 1156 CRORES AND LOOKING AT THE FIRST QUARTER PERFORMANCE THE COMPANY MIGHT DO AROUND 100 CRORES OF NET PROFIT FOR FY 12. EFFECTIVELY THE STOCK IS AVAILABLE AT 11-12 TIMES FY 12 EARNINGS EVEN AFTER THE RECENT RUN UP.

LOOKS LIKE THIS COULD GO THE AVT WAY.

hit ji
could you tell what AVT is ?

Originally posted by hit2710 LOOKS LIKE THIS COULD GO THE AVT WAY.

Rather look at this Link: 3 MONTH CHART

Originally posted by tejas.k hit ji ,when u say it could go the avt way, do you mean price movement or something else?

I mentioned earlier also that for first quarter adjusted net profit is around 27 crores.(this is a rough estimate by deducting the extraordinary and tax thereon) So extrapolating it for four quarters gives net profit for full yr in excess of 100 crores. Last yr net profit was 65 crores. So for fy 12 there could be more than 50% growth.

Now as earlier mentioned in the thread the second half of the year for this company is usually better than first half. So there could be an upside risk to above assumption.

current market cap is around 1156 crores if you consider expanded equity of around 12.5 crores and cmp of 930 or so. So on a market cap of 1156 if the company can post net profit of above 100 crores it is available at a forward PE of just 11-12 and for a company with excellent growth visibility for next 3 years atleast based on its orderbook for custom synthesis business, re rating is bound to occur.

Projecting an optimistic PE of 20 for this stock, the market cap could reach more than 2000 crores which means stock could roughly double from here with the rerating and earnings growth.

Projections for fy 13-- edelweiss in one of its reports projects eps for fy 13 at 104. If that is achieved (looks possible) then price can only be guessed. And since floating stock is low the scarcity premium would come into play and could give dizzy heights to stock price.

All the above projections are made by a part owner of the business who happens to be very optimistic and hence you are requested to do your own homework and decide. Ideal time could be a bad quarter but that is when the investor confidence is shaken most and hence people are scared to buy.

To me this looks like a candiate for PE rerating with consistent EPS growth which puts it in a very sweet spot.