Company Update

August 26, 2016

Rating matrix
Rating
Target
Target Period
Potential Upside

:
:
:
:

Phillips Carbon Black (PHICAR)

Buy
| 300
12-18 months
25%

Growth momentum to sustain...

Whats changed?
Target
EPS FY17E
EPS FY18E
Rating

Changed from | 240 to | 300

Changed from | 14.4 to | 13.2
Unchanged at | 27.0
Unchanged

Key financials
| crore
Net Sales
EBITDA
Net Profit
EPS

FY15
2470.2
152.3
12.6
3.7

FY16
1894.7
165.0
22.7
6.6

FY17E
1711.3
217.4
45.5
13.2

FY18E
1850.1
240.6
93.0
27.0

FY17E
18.2
22.7
7.4
1.5
8.2
12.1
12.5

FY18E
8.9
11.1
6.3
1.3
14.7
13.7
14.3

Valuation summary
P/E
Target P/E
EV / EBITDA
P/BV
RoNW
RoCE
ROIC

FY15
65.6
82.0
13.4
1.6
2.5
6.2
5.8

FY16
36.1
45.2
10.3
1.6
4.4
8.0
8.4

Stock data
Stock Data
Market Capitalization
Total Debt (FY16)
Cash and Cash Equivalent (FY16)
Enterprise Value
52 week H/L
Equity Capital
Face Value
MF Holding (%)
FII Holding (%)

| crore
827
1021
149.0
1700.0
247 / 80
34.5
| 10
0.0
6.5

Stock data
Phillips Carbon Black
Oriental Carbon (OCCL)

1M
29
21

3M
105
64

| 240

6M
182
85

12M
109
23

Research Analyst
Chirag J Shah
shah.chirag@icicisecurities.com
Shashank Kanodia, CFA
shashank.kanodia@icicisecurities.com

ICICI Securities Ltd | Retail Equity Research

Phillips Carbon Black (PCBL) reported a robust Q1FY17 performance;

largely tracking our investment thesis. Net sales for the quarter were
at | 430.6 crore, down 10% YoY
EBITDA was at | 53.0 crore with corresponding EBITDA margins at
12.3%. PAT in Q1FY17 was at | 12.0 crore
Carbon black sales volume in Q1FY17 was at 95,500 tonne, which
includes domestic sales of 76400 tonne and export sales of 19,100
tonne. Corresponding EBITDA/tonne in Q1FY17 was at | 5548 tonne
Carbon black; critical tyre component!
Carbon black is used as a reinforcement material providing tensile
strength to tyres. It is a critical component for manufacturing tyres and
forms ~26% by volume of the tyre weight and ~10% by value of tyre
costs. Total global capacity for manufacturing carbon black as of CY15
was at 16 million tonne (MT) with total demand at ~12 MT and is
expected to grow at a CAGR of 4-5% in the next couple of years. In India,
total capacity for manufacturing carbon black as of FY16 was at 1 MT with
consumption at ~0.8 MT. PCBL with a capacity of 470 KT is the largest
player domestically with market share in excess of 30%. Domestic
demand is expected to grow at a CAGR of 6-7% in FY16-18E.
Decline in crude, anti dumping duty on Chinese imports; sweet spot!
Carbon black can be manufactured using two different processes, which
either use coal tar or crude derivative i.e. carbon black feed stock (CBFS)
as a raw material. Post a decline in crude prices, manufacturing of carbon
black using CBFS has gained traction (more economic viable option),
which benefits Indian players including PCBL. In a recent update, as of
November 2015, for five years i.e. till November 2020, the Government of
India has imposed an anti dumping duty on imports of carbon black from
China into India to the tune of ~US$400/tonne (global realisations at
~US$600/tonne as of Q1FY17), which protects the interest of domestic
carbon black manufacturer, including PCBL.
Increasing volume; operating leverage benefits to kick in!
With a positive outlook on the domestic automobile sector and
consequent strong tyre demand, we expect PCBL to report strong volume
growth, going forward. At PCB, we expect sales volume of carbon black
to grow at 6.5% CAGR in FY18E-16 to 380 KT in FY18E (335 KT in FY16).
Moreover, this sales volume growth will be led by domestic sales, which
are indeed accretive in realisations and consequent margins. Domestic to
exports sales volume mix is expected to improve to 80:20 in FY17E-18E
vs. 72:28 in FY16. Thus, increasing capacity utilisations and its operating
leverage benefits, sales tilted more in favour of domestic vis--vis exports
and decline in key raw material prices (CBFS) will result in an expansion
of EBITDA margins to the tune of 430 bps in FY16-18E.
Declining debt; strong earnings trajectory warrants re-rating!
By virtue of declining profitability and elongated working capital cycle,
PCBL has accumulated huge debt with peak debt at | 1220 crore as of
FY15. However, with enhanced profitability and working capital controls,
debt has reduced to | 1021 crore in FY16. Going forward, however, with a
strong operational performance led by 6.5% sales volume growth in
FY16-18E and 430 bps EBITDA margin expansion, we expect PAT to
quadruple at PCBL by FY18. This will improve the leverage profile with
consequent D/E at 1.2x by FY18E. We expect PCB to report PAT of | 45.5
crore in FY17E & | 93 crore in FY18E. We value PCB at | 300, i.e. 11x P/E
on FY18E EPS of | 27/share. We have a BUY rating on the stock.

Company Analysis
Phillips Carbon Black (PCBL) is an RP-Sanjiv Goenka group (CESC
promoter group) company manufacturing carbon black domestically.
PCBL was incorporated in 1960 in collaboration with Phillips Petroleum
Company, US. In 1988, PCBL entered into a technical collaboration with
Columbian Chemicals Company, US. PCBLs first plant for manufacturing
carbon black was set up in Durgapur (West Bengal) with an installed
capacity of 14 KT, which commenced production in 1962. As of FY16,
PCB has four plants across India manufacturing carbon black with
associated waster heat recovery power plants; Durgapur, WB (147 KT, 30
MW); Mundra, Gujarat (140 KT, 30 MW); Palej, Gujarat (95 KT, 12 MW);
Kochi, Kerala (90 KT, 10 MW). Producing power from waste gases; makes
PCBL a carbon neutral company.
Carbon black - capacity utilisation inching upwards!
PCBL has an effective installed capacity of 411 kilo tonne (KT) for carbon
black (name plate capacity at 472 KT). In FY16, PCB operated at 81%
capacity utilisation levels with carbon black sales at 335 KT. Going
forward, on the back of a pick-up in tyre demand domestically &
imposition of anti dumping duty, PCBL is witnessing robust demand.
Capacity utilisation is expected to augment to 93% in FY18E with
corresponding carbon black sales at 380 KT in FY18E, implying sales
volume CAGR of 6.5% in FY16-18E.
Exhibit 1: Capacity, production & capacity utilisation levels
500000
76

400000

380175

411000

361680

411000

411000

332038

100000

60
311823

200000

100
80

300000
411000

tonne

PCBL also sells high margin speciality grade carbon black,

which finds application in plastics, inks, etc. Its volume in
FY16 was at 5 KT (2.5 KT in FY15). Going forward, the
speciality grade sales volume is expected at 7.2 KT in
FY17E & 10 KT in FY18E, which will further drive profitability

93

88

81

40
20

0
FY15

FY16

Capacity

FY17E

Production

FY18E

Capacity Utilization Levels

Source: Company, ICICIdirect.com Research

Exhibit 2: Sales volume & realisation

Exhibit 3: Sales mix in favour of domestic sales

380175

361680

100000

335146

200000

100000

100

80000

80

60000

60

40000
20000
0

0
FY15

FY16

Sales Volume

FY17E

FY18E

Realization (|/tonne)

Source: Company, ICICIdirect.com Research

Realisations of carbon black largely follow crude prices.
Hence, there was a steep correction in FY16 over FY15.
Going forward, we have largely assumed realisations to be
flat over FY17E & FY18E

ICICI Securities Ltd | Retail Equity Research

28

28

20

20

72

72

80

80

FY15

FY16

FY17E

FY18E

54257

45043

46368

300000
313562

tonne

400000

76571

|/tonne

500000

40
20
0

Domestic Sales Volume

Export Sales Volume

Source: Company, ICICIdirect.com Research

Moreover, this sales volume growth will be led by domestic sales, which
are indeed accretive in realisations and margins. Domestic to exports mix
is expected to improve to 80:20 in FY17E-18E vs. 72:28 in FY16.

Page 2

Realisation of carbon black in export markets (US$642/tonne in FY16) is

lower than that in domestic market (US$887/tonne) primarily on account
of freight and selling expense incurred by PCBL for exports. Exports will,
however, continue to provide balanced earning profile, with PCBL
supplying carbon black to all major tyre manufacturers outside India.

100000

80000

40000

42000 100000
80000

50000

60000

25000

0
FY15
FY16
FY17E
Domestic Sales Volume

40800

75000

20000

42035

76035

60000

65397

72336

304140

289344

242621

227150

tonne

100000

92525

58076

200000
100000

47460

86412

46104

tonne

79484

|/tonne

300000

Exhibit 5: Export sales volume & realisation

40000
20000
0

FY18E
Domestic Realization

FY15
FY16
Exports Sales Volume

Source: Company, ICICIdirect.com Research

|/tonne

Exhibit 4: Domestic sales volume & realisation

FY17E

FY18E
Exports Realization

Source: Company, ICICIdirect.com Research

Net sales to largely remain flat; tracking muted realisations

Sales growth, however, is expected to be flat in FY16-18E despite volume
growth due to steep correction in realisations in FY17E (blended
realisations assumed at US$674/tonne vs. FY16 at US$828/tonne) largely
tracking the decline in crude price.
Exhibit 6: Net sales trend
3000
2500

2467
1893

We expect PCBL to record net sales of | 1710 crore in

FY17E & | 1848 crore in FY18E

| crore

2000

1710

1848

1500
1000
500
0
FY15

FY16

FY17E

FY18E

Source: Company, ICICIdirect.com Research

Exhibit 7: Sales break-up

3000
2500

2398
1816

2000
| crore

PCBL generates power out of the waste gases generated

during the manufacturing of carbon black. On an average, it
generates ~1100 units of electricity per tonne of carbon
black produced. Its captive consumption is ~350 units with
the rest ~750 units being sold to the external grid. This
surplus power sales contributed a healthy ~5% of total
sales at PCBL and drives operational efficiencies at PCBL

1763

1629

1500
1000
500

76

69

81

86

0
FY15

FY16
Carbon Black Sales

FY17E

FY18E

Power Sales

Source: Company, ICICIdirect.com Research

ICICI Securities Ltd | Retail Equity Research

Page 3

Margin expansion to drive EBITDA & PAT, going forward

Operating leverage benefits, sales tilted in favour of domestic vis--vis
exports, increasing share of specialty grade sales and decline in raw
material price will result in expansion of EBITDA margins to the tune of
430 bps in FY16-18E. We expect PCBL to clock EBITDA margins of 12.7%
in FY17E & 13% in FY18E vs. 8.7% in FY16.
EBITDA/tonne is expected at | 6011/tonne in FY17E & | 6328/tonne
(including hedging costs) in FY18E (| 4926/tonne in FY16).

0
FY15

FY16

FY17E

EBITDA

FY18E

6.6

3.7

FY15

FY16

15
10
5
0

FY17E

PAT

EBITDA Margin

20
93.0

40
20

13.2

45.5

60

22.7

| crore

240.6

217.4

165.0

152.3

| crore

30
25

80

10

6.2

27.0

100

12.6

8.7

200

50

14
12

250

100

13.0

12.7

300

150

Exhibit 9: PAT & EPS trend

|/share

Exhibit 8: EBITDA & EBITDA margins trend

FY18E

EPS (|)

Source: Company, ICICIdirect.com Research

Source: Company, ICICIdirect.com Research

In FY16-18E, on account of sales volume growth (6.5% CAGR), expansion

in EBITDA margins (430 bps) and reducing interest costs, we expect PAT
to quadruple at PCBL to | 93 crore in FY18 vs. | 23 crore in FY16.
Corresponding EPS is expected at | 13.2 in FY17E & | 27 in FY18E.
Increasing profitability to result in improved return ratio profile
Return ratios were subdued in the past due to subdued profitability.
However, with a robust performance in FY16-18E, the same has improved
with RoE & RoCE expected at ~14% by FY18E.
3.0

1,400

1.2
632.3

200

2.5

771.4

400

4.4

0
FY15

FY16

FY17E
RoE

RoCE

Source: Company, ICICIdirect.com Research

FY18E

1.5

1.6
871.4

600

2.0

2.0

555.8

8.2

8.0
6.2

800

2.5

2.4

1,021.4

1,000

522.7

1,200

13.7

1,219.7

12.1

14.7

510.2

16.0
14.0
12.0
10.0
8.0
6.0
4.0
2.0
0.0

Exhibit 11: Debt : Equity trend

| crore

Exhibit 10: Return ratios profile

1.0
0.5
0.0

FY15

FY16
Debt

FY17E
Equity

FY18E
Debt:Equity

Source: Company, ICICIdirect.com Research

Debt gearing set to improve!!

By virtue of declining profitability and an elongated working capital cycle,
PCBL has accumulated huge debt with peak debt at | 1220 crore as of
FY15 (debt: equity at 2.4x). However, with enhanced profitability and
working capital controls, debt has reduced to | 1021 crore as of FY16
(debt : equity at 2.0x). Going forward, however, with a strong operational
performance and consequent cash flow generation, we expect leverage
to further improve with FY18E debt expected at | 771 crore with
consequent debt: equity at 1.2x.

ICICI Securities Ltd | Retail Equity Research

Page 4

Outlook and valuation

PCBL is the manufacturer of carbon black, which is primarily used as a
reinforcement material in tyres and other industrial rubber goods. PCBL is
the largest manufacturer of carbon black in India with a market share of
31%. With the robust auto sector outlook, a steep correction in crude
price (raw material a crude derivative) and operational efficiencies, PCBL
is on a strong footing with robust prospects, going forward.
By virtue of declining profitability (6.2% EBITDA margins in FY15) and an
elongated working capital cycle (93 days in FY15) PCBL has accumulated
huge debt with peak debt at | 1220 crore as of FY15. However, with the
tide now turning in favour of PCBL and working capital controls, debt has
reduced to | 1021 crore as of FY16 with consequent debt: equity at 2.0x.
Going forward, with a strong operational performance, we expect PCBL to
generate healthy CFO annually to the tune of ~| 190 crore (FCF to the
tune of ~| 170 crore annually). This will further reduce debt, with
consequent debt: equity at 1.2x by FY18E. Going forward, in FY16-18E,
on account of sales volume growth (6.5% CAGR), expansion in EBITDA
margins (430 bps) and reducing interest costs, we expect PAT to
quadruple to | 93 crore in FY18 vs. | 23 crore in FY16. We value PCBL at
| 300, i.e. 11x P/E on FY18E EPS of | 27/share. We have a BUY
recommendation on the stock.
The key risk to our call is the inherent volatility associated with the carbon
black price, which is largely crude linked and high forex exposure of PCBL
(net importer) resulting in high hedging costs.
Exhibit 12: Whats changed?
Particulars
Old
1,740.4
230.5
13.2
49.5
14.4

Revenue
EBITDA
EBITDA Margin %
PAT
EPS

FY17E
New
1711.3
217.4
12.7
45.5
13.2

% Change
(1.7)
(5.7)
-54 bps
(8.1)
(8.4)

Old
1,880.6
249.2
13.3
92.9
27.0

FY18E
New
1850.1
240.6
13.0
93.0
27.0

% Change
(1.6)
(3.5)
-25 bps
0.2
0.0

Source: Company, ICICIdirect.com Research

Exhibit 13: Valuation Summary

FY15
FY16
FY17E
FY18E

Sales
(| cr)
2467.3
1892.7
1709.7
1848.3

Growth
(%)
8.5
-23.3
-9.7
8.1

EPS
(|)
3.7
6.6
13.2
27.0

Growth
(%)
-114.6
81.4
98.7
104.6

PE
(x)
65.6
36.1
18.2
8.9

EV/EBITDA
(x)
13.4
10.3
7.4
6.3

RoNW
(%)
2.5
4.4
8.2
14.7

RoCE
(%)
6.2
8.0
12.1
13.7

Source: Company, ICICIdirect.com Research

ICICI Securities Ltd | Retail Equity Research

Page 5

Recommendation history vs. consensus estimate

300

100
80

200

(%)

(|)

60
40

100

20
0

0
Oct-14

Dec-14
Price

Mar-15

May-15

Idirect target

Aug-15

Oct-15

Jan-16

Consensus Target Mean

Mar-16

Jun-16

Aug-16

% Consensus with Hold

Source: Bloomberg, Company, ICICIdirect.com Research; *I-direct coverage on Phillips Carbon Black was initiated on July 2016

Key events
Date/Year
2003
2007
2009
2010
2012

Event
PCBL increases its carbon black capacity in Durgapur to 1,35,000 metric tonne (MT) taking total Carbon Black Capacity to 2,00,000 MT
The company enters into a MOU for a carbon black plant in Vietnam
PCBL commences production of carbon black from the Greenfield capacity at Mundra with capacity of 90,000 MT (Total Carbon Black Capacity: 3,60,000 MT). PCBL
witnesses difficult market conditions with PCBL reporting loss at the PAT level in FY09
PCBL completes 50 years in operation. Golden jubilee year
PCBL further augments its carbon black capacity at Mundra & Durgapur. Commences 50,000 MT carbon black plant at Mundra (Total Carbon Black Capacity: 4,10,000
MT); Commences 8 MW co-generation power plant at Mundra, Gujarat (Total Power Capacity: 76 MW). Commences 12,000 MT carbon black plant at Durgapur (Total
Carbon Black Capacity: 4,22,000 MT)

2014

PCBL commences 50,000 MT carbon black plant at Kochi (Total Carbon Black Capacity: 4,72,000 MT)

2015
2016

PCBL records highest lifetime turnover of | 2470 crore in FY15. Consequent EBITDA & PAT stood at | 152 crore and | 13 crore respectively.
As of FY16, PCBL has 4 plants across India manufacturing carbon black with associated waster heat recovery power plants; Durgapur, WB (147 KT, 30 MW); Mundra,
Gujarat (140 KT, 30 MW); Palej, Gujarat (95 KT, 12 MW); Kochi, Kerela (90 KT, 10 MW). It is currently headed by Mr. Sanjiv Goenka (Chairman), CEO Mr. Kaushik Roy
and
CFO

Mr.
Raj
Kumar
Gupta.
In
FY16,
PCB
distributed
dividend
of
|
2.5/share
(EPS
|
6.6/share)

Source: Company, ICICIdirect.com Research

Top 10 Shareholders

Shareholding Pattern

Rank
1
2
3
4
5
6
7
8

(in %)
Promoter
FII
DII
Others

Name
Latest Filing Date % O/S Position (m) Position Change (m)
RPG Enterprises
30-Jun-16 50.0
17.2
0.0
Dotex Merchandise Pvt. Ltd.
30-Jun-16
3.4
1.2
0.0
Jupiter Asset Management Ltd.
30-Jun-16
2.9
1.0
-0.3
Elara Capital Plc
30-Jun-16
2.2
0.8
-0.1
Kerala State Industrial Development Co., Ltd
30-Jun-16
1.4
0.5
0.0
Lodha (Chandra Singh)
30-Jun-16
1.1
0.4
0.0
BNP Paribas Investment Partners Asia Ltd.
31-Mar-16
0.0
0.0
0.0
BNP Paribas Investment Partners Netherlan
31-Dec-15
0.0
0.0
0.0

Jun-15 Sep-15 Dec-15 Mar-16 Jun-16

53.6
53.6
53.6
53.6
53.6
6.3
6.4
6.7
6.9
6.5
1.6
1.6
1.6
0.0
0.0
38.6
38.4
38.1
39.6
39.9

Source: Reuters, ICICIdirect.com Research

Recent Activity
Buys
Investor name
BNP Paribas Investment Partners Netherlands N.V.

Sells
Value
0.00

Shares Investor name

0.00 Jupiter Asset Management Ltd.
Elara Capital Plc
Lodha (Chandra Singh)

Value
-0.72M
-0.32M
-0.00M

Shares
-0.30M
-0.13M
-0.00M

es

Source: Reuters, ICICIdirect.com Research

ICICI Securities Ltd | Retail Equity Research

Page 6

Financial summary (Standalone)

Profit and loss statement
(Year-end March)
Net Sales
Other Operating Income
Total Operating Income
Growth (%)
Raw Material Expenses
Employee Expenses
Selling Expense
Other Operating Expense
Total Operating Expenditure
EBITDA
Growth (%)
Depreciation
Interest
Other Income
PBT
Exceptional Item
Total Tax
PAT
Growth (%)
EPS (|)

| Crore
FY15
2467.3
3.0
2470.2
8.5
1,940.4
70.2
73.3
234.1
2,318.0
152.3
496.9
57.5
94.8
14.4
14.3
0.0
1.7
12.6
-114.6
3.7

FY16
1892.7
2.1
1894.7
-23.3
1,344.6
73.4
68.7
243.2
1,729.8
165.0
8.3
55.0
70.9
18.0
57.0
0.0
34.3
22.7
80.3
6.6

FY17E
1709.7
1.7
1711.3
-9.7
1,124.1
83.5
68.7
217.6
1,493.9
217.4
31.8
56.6
66.2
18.1
112.6
0.0
67.2
45.5
100.1
13.2

FY18E
1848.3
1.8
1850.1
8.1
1,221.1
83.3
73.9
231.3
1,609.5
240.6
10.7
58.4
57.5
16.7
141.3
0.0
48.3
93.0
104.6
27.0

Cash flow statement

(Year-end March)
Profit after Tax
Add: Depreciation
(Inc)/dec in Current Assets
Inc/(dec) in CL and Provisions
Others
CF from operating activities
(Inc)/dec in Investments
(Inc)/dec in Fixed Assets
Others
CF from investing activities
Issue/(Buy back) of Equity
Inc/(dec) in loan funds
Interest & Dividend paid
Inc/(dec) in Share Cap
Others
CF from financing activities
Net Cash flow
Opening Cash
Closing Cash

| Crore
FY15
12.6
57.5
129.4
-296.6
94.8
-2.3
0.0
-26.4
-2.1
-28.5
0.0
133.1
-98.9
0.0
-0.7
33.4
2.6
8.9
11.5

FY16
22.7
55.0
150.4
130.1
70.9
429.1
-98.0
-33.9
21.3
-110.6
0.0
-198.3
-81.3
0.0
0.0
-279.6
39.0
11.5
50.6

FY17E
45.5
56.6
75.3
-51.3
66.2
192.4
60.0
-23.5
0.0
36.5
0.0
-150.0
-78.7
0.0
0.0
-228.7
0.2
50.6
50.9

FY18E
93.0
58.4
-49.8
28.6
57.5
187.7
20.0
-25.0
0.0
-5.0
0.0
-100.0
-74.0
0.0
0.0
-174.0
8.7
50.9
59.6

FY15

FY16

FY17E

FY18E

3.7
20.4
148.1
1.0
24.3

6.6
22.5
151.7
2.5
64.1

13.2
29.6
161.3
3.0
46.8

27.0
44.0
183.5
4.0
43.5

6.2
0.5
43.9
77.1
27.9

8.7
1.2
47.1
84.7
59.9

12.7
2.7
45.0
85.0
55.0

13.0
5.0
45.0
85.0
55.0

2.5
6.2
5.8

4.4
8.0
8.4

8.2
12.1
12.5

14.7
13.7
14.3

65.6
13.4
0.8
0.3
1.6

36.1
10.3
0.9
0.4
1.6

18.2
7.4
0.9
0.5
1.5

8.9
6.3
0.8
0.4
1.3

8.0
2.4
4.6
3.1

6.2
2.0
2.3
1.6

4.0
1.6
2.5
1.7

3.2
1.2
2.4
1.7

Source: Company, ICICIdirect.com Research

Source: Company, ICICIdirect.com Research

Balance sheet

| Crore

(Year-end March)
Liabilities
Equity Capital
Reserve and Surplus
Total Shareholders funds
Total Debt
Deferred Tax Liability
Minority Interest / Others
Total Liabilities

FY15

FY16

FY17E

FY18E

34.5
475.8
510.2
1,219.7
27.8
0.6
1,758.3

34.5
488.3
522.7
1,021.4
49.1
0.6
1,593.8

34.5
521.3
555.8
871.4
49.1
0.6
1,476.9

34.5
597.8
632.3
771.4
49.1
0.6
1,453.4

Assets
Gross Block
Less: Acc Depreciation
Net Block
Capital WIP
Total Fixed Assets
Investments
Inventory
Debtors
Loans and Advances
Other Current Assets
Cash
Total Current Assets
Current Liabilities
Provisions
Current Liabilities & Prov
Net Current Assets
Others Assets
Application of Funds

1,291.4
471.0
820.5
73.5
893.9
72.4
296.8
521.4
97.1
15.9
11.5
942.7
188.5
16.0
204.5
738.2
53.9
1,758.3

1,323.8
524.4
799.4
73.4
872.8
170.4
244.2
439.0
90.0
7.6
50.6
831.4
310.4
24.3
334.7
496.8
53.9
1,593.8

1,372.2
582.5
789.7
50.0
839.7
110.4
210.8
398.1
88.9
7.7
50.9
756.4
257.6
25.8
283.4
473.1
53.9
1,476.9

1,397.2
641.0
756.2
50.0
806.2
90.4
227.9
430.4
88.7
8.3
59.6
814.9
278.5
33.4
311.9
503.0
53.9
1,453.4

Key ratios
(Year-end March)
Per share data (|)
EPS
Cash EPS
BV
DPS
Cash Per Share (Incl Invst)
Operating Ratios (%)
EBITDA Margin
PAT Margin
Inventory days
Debtor days
Creditor days
Return Ratios (%)
RoE
RoCE
RoIC
Valuation Ratios (x)
P/E
EV / EBITDA
EV / Net Sales
Market Cap / Sales
Price to Book Value
Solvency Ratios
Debt/EBITDA
Debt / Equity
Current Ratio
Quick Ratio

Source: Company, ICICIdirect.com Research

Source: Company, ICICIdirect.com Research

ICICI Securities Ltd | Retail Equity Research

Page 7

RATING RATIONALE

ICICIdirect.com endeavours to provide objective opinions and recommendations. ICICIdirect.com assigns

ratings to its stocks according to their notional target price vs. current market price and then categorises them
as Strong Buy, Buy, Hold and Sell. The performance horizon is two years unless specified and the notional
target price is defined as the analysts' valuation for a stock.
Strong Buy: >15%/20% for large caps/midcaps, respectively, with high conviction;
Buy: >10%/15% for large caps/midcaps, respectively;
Hold: Up to +/-10%;
Sell: -10% or more;

Head Research

Pankaj Pandey

pankaj.pandey@icicisecurities.com

ICICIdirect.com Research Desk,

ICICI Securities Limited,
1st Floor, Akruti Trade Centre,
Road No 7, MIDC,
Andheri (East)
Mumbai 400 093
research@icicidirect.com

ICICI Securities Ltd | Retail Equity Research

Page 8

ANALYST CERTIFICATION
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recommendation(s) or view(s) in this report.

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