HSIL Ltd - Q2 FY11 Result Update

HSIL Ltd - Q2 FY11 Result Update

o    HSIL Ltd (HSIL)’s total revenue registered a growth of 29% YoY to INR 2220 mn backed by healthy growth in both building products and container glass segments. The results were marginally below our estimates.

o    The company’s operating profit at INR 449 mn, witnessed a 20% increase Y-o-Y. EBITDA margin at 20.84% registered a decrease of 121 basis points on a Y-o-Y basis.

o   PAT at INR 139 mn witnessed a growth of 52% as compared to the same quarter in the previous year. PAT margin at 6.46% has increased by 107 basis points Y-o-Y. EPS for the quarter stood at INR 2.53.

Valuation

At the CMP of INR 137, the stock trades at ~9x our consolidated FY12E EPS. We recommend to “BUY” the stock with a price objective of ~INR 178.

 Thanks & Regards,

Unicon Wealth Research