Please refer to important disclosures at the end of this report 1 Y/E March ( ` cr) 4QFY2013 3QFY2013 % chg (qoq) 4QFY2012 % chg (yoy) Net sales 2,773 2255 22.9 2119 30.8 Other income 66 68 0.0 25 168.2 Gross profit 1322 1100 20.2 1001 32.0 Operating profit 489 364 34.3 354 37.9 Adj. net Net profit 292 173 68.6 205 42.9 Source: Compan y, Angel ResearchFor 4QFY2013, United Phosphorus (UPL)’ revenue grew by 30.8% yoy to `2,773cr and Adj. net PAT grew by 42.9% to `292cr. For FY2014, the Management has maintained its guidance of a revenue growth of 12-15% and of OPM (incl. other income) expanding by 100bp. However, even after factoring in the conservative numbers, the stock is quoting at an attractive valuation of 6.0x FY2015E EPS and hence, we maintain our Buy rating on the stock. Robust growth: The company has reported a top-line growth of 30.8% yoy for the quarter to `2,773cr. The top-line growth was driven by both exports and domestic business, which grew by 25.0% and 33.0% respectively.The exports growth came on the back of North America and Europe, which grew by 49% and 37% respectively. The top-line growth was driven by a 16% volume growth, while the price rise was of around 4%. The exchange impact on sales growth was of around 12%. On the operating front, the company reported an EBITDA margin expansion of 91bp to 17.6% (16.7% in 4QFY2012). This aided the net profit to grow by37.9% yoy to end the period at `278cr, on back of top-line growth. Outlook and valuation: We expect UPL to post a CAGR of 12.0% and 14.2% in its sales and PAT respectively, over FY2013-15. At the current valuation of 6.0x FY2015E EPS, the stock is attractively valued. Hence, we maintain our Buy recommendation on the stock with a revised target price of ` 232. Key financials (Consolidated) Y/E March ( ` cr) FY2012 FY2013E FY2014E FY2015E Total revenue 7,534 9,010 10,298 11,310 % chg 30.8 19.6 14.3 9.8 Adj. profit 561 786 907 1,025 % chg 1.6 40.0 15.3 13.1 EBITDA (%) 16.5 16.1 16.5 16.5 EPS ( ` ) 12.2 17.8 20.5 23.2 P/E (x) 11.4 7.8 6.8 6.0 P/BV (x) 1.5 1.3 1.1 1.0 RoE (%) 14.2 17.8 18.0 17.4 RoCE (%) 16.1 14.9 15.7 15.8 EV/Sales (x) 1.0 0.9 0.7 0.6 EV/EBITDA (x) 6.2 5.6 4.3 3.6 Source: Compan y, Angel ResearchBUY CMP `139 Target Price `232 Investment Period 12 Months Stock Info Sector 2,379 Bloomberg Code Shareholding Pattern (%) Promoters 28.9 MF / Banks / Indian Fls 26.5 FII / NRIs / OCBs 34.6 Indian Public / Others 10.0 Abs. (%) 3m 1yr 3yr Sensex (4.1) 12.6 8.7 UPL 0.5 22.3 (6.6) Agrichemical Avg. Daily Volum e Market Cap ( `cr) Beta 52 Week High / Low 6,307 0.8 144/105 209852 Net Debt ( `cr) UNTP@IN Face Value ( `) BSE Sensex NiftyReuters Code 2 19,287 5,871 UNPO.BO Sarabjit Kour Nangra +91-22-3935 7800 ext. 6806 [email protected]United Phosphorus Performance Highlights 4QFY2013 Result Update | Agrichemica l April 26, 2013
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For 4QFY2013, United Phosphorus (UPL)’ revenue grew by 30.8% yoy to ` 2,773cr
and Adj. net PAT grew by 42.9% to ` 292cr. For FY2014, the Management has
maintained its guidance of a revenue growth of 12-15% and of OPM (incl. otherincome) expanding by 100bp. However, even after factoring in the conservative
numbers, the stock is quoting at an attractive valuation of 6.0x FY2015E EPS and
hence, we maintain our Buy rating on the stock.
Robust growth: The company has reported a top-line growth of 30.8% yoy for the
quarter to ` 2,773cr. The top-line growth was driven by both exports and domestic
business, which grew by 25.0% and 33.0% respectively. The exports growth came
on the back of North America and Europe, which grew by 49% and 37%
respectively. The top-line growth was driven by a 16% volume growth, while the
price rise was of around 4%. The exchange impact on sales growth was of around
12%. On the operating front, the company reported an EBITDA margin expansion
of 91bp to 17.6% (16.7% in 4QFY2012). This aided the net profit to grow by
37.9% yoy to end the period at ` 278cr, on back of top-line growth.
Outlook and valuation: We expect UPL to post a CAGR of 12.0% and 14.2% in its
sales and PAT respectively, over FY2013-15. At the current valuation of 6.0x
FY2015E EPS, the stock is attractively valued. Hence, we maintain our Buy
recommendation on the stock with a revised target price of `232.
Research Team Tel: 022 - 39357800 E-mail: [email protected] Website: www.angelbroking.com
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Disclosure of Interest Statement UPL
1. Analyst ownership of the stock No
2. Angel and its Group companies ownership of the stock No
3. Angel and its Group companies' Directors ownership of the stock No
4. Broking relationship with company covered No
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