Download Jindal Saw (SAWPIP)

Result Update
February 3, 2016
Rating matrix
Rating
Target
Target Period
Potential Upside
:
:
:
:
Jindal Saw (SAWPIP)
Hold
| 50
12 months
6%
Volume disappoints; margins surprise positively
What’s Changed?
Target
EPS FY16E
EPS FY17E
Rating
Changed from | 60 to | 50
Changed from | 12.7 to | 9.0
Changed from | 16.0 to | 14.0
Unchanged
Quarterly Performance
Revenue
EBITDA
EBITDA (%)
PAT
Q3FY16
1077.0
179.6
16.7
39.2
Q3FY15
1777.4
238.5
13.4
61.9
YoY (%)
-39.4
-24.7
326 bps
-36.6
Q2FY16
1345.0
161.8
14.0
101.1
QoQ (%)
-19.9
11.0
265 bps
-61.2
Key Financials
| Crore
Total Op. Income
EBITDA
Net Profit
EPS (|)
FY14
6655.9
640.1
-85.6
-3.1
FY15
8324.7
935.7
25.9
0.9
FY16E
8367.5
1030.9
261.1
9.0
FY17E
10382.4
1352.9
406.1
14.0
FY14
NA
NA
11.0
0.4
-2.4
3.3
FY15
52.7
56.0
9.1
0.4
0.7
4.6
FY16E
5.2
5.6
8.3
0.3
6.7
5.4
FY17E
3.4
3.6
5.9
0.3
9.5
7.9
Valuation summary
P/E
Target P/E
EV / EBITDA
P/BV
RoNW (%)
RoCE (%)
Stock data
Particular
Market Capitalization (| Crore)
Total Debt (FY15) (| Crore)
Cash and Investments (FY15) (| Crore)
EV (| Crore)
52 week H/L (|)
Equity capital
Face value
| 47
Amount
| 1431 crore
| 7832 crore
| 639 crore
| 8624 crore
86/46
60.91
|2
Price performance (%)
Return %
Jindal Saw
1M
-20.7
3M
-23.5
6M
-35.0
12M
-38.4
Maharashtra Seamless
-14.5
-2.6
-19.8
-27.9
Research Analyst
Dewang Sanghavi
[email protected]
ICICI Securities Ltd | Retail Equity Research
• Jindal Saw reported a mixed set of Q3FY16 numbers wherein the
topline, EBITDA and PAT came in lower than our estimates. Pipes
sales volume came in lower than our estimate. EBITDA margins,
however, surprised positively during the quarter
• Topline for the quarter came in at | 1077.0 crore (down 39.4% YoY,
19.9% QoQ and lower than our estimate of | 1350.5 crore). Pipes
segment reported sales volume of ~146000 tonnes, lower than our
estimate of ~200000 tonnes
• EBITDA came in at | 179.6 crore (down 24.7% YoY, 4.8% QoQ and
lower than our estimate of | 189.2 crore). However, the EBITDA
margin came in higher than our estimate. The EBITDA margin came
in at 16.7% (up 265 bps QoQ and 326 bps YoY and higher than our
estimate of 14.0%)
• Ensuing PAT for the quarter was at | 39.2 crore (down 36.6% YoY,
61.2% QoQ and lower than our estimate of | 57.2 crore)
• The company is not doing any additional capex/projects other than
normal/maintenance capex. It has deferred its decision to implement
the steel plant at Bhilwara (Rajasthan) for the time being
Order book increases QoQ…
On a sequential basis, the order book of Jindal Saw increased ~12.5%
QoQ. Jindal Saw’s order book at the end of Q3FY16 was at ~US$900
million. The break-up is as under:
ƒ Large diameter pipes – US$470 million
ƒ Ductile iron pipes – US$410 million
ƒ Seamless pipes and others– US$10 million
ƒ Pellets – US$10 million
The order book position in terms of volume is over 1.2 million tonnes
(MT), highest in the last five years. The orders of large diameter pipes are
slated to be executed by June/September 2016. In case of ductile iron
pipes, the same is slated to be executed over the next 12-18 months or
more. The company has participated in various bids and is likely to get
orders in phases. The current order book includes export of ~35%. The
major exports orders are from Middle East, gulf region, South East Asia
and Far East.
Utilisation level of saw pipe segment, key monitorable, going forward
Over the last couple of years, the saw pipe segment has been operating
at muted capacity utilisation levels. The current order book of the large
diameter pipe segment (LSAW and HSAW) is ~5,50,000 tonnes. During
Q3FY16, production and dispatches were subdued on account of
pressure on liquidity on domestic buyers. The management has guided
that the situation is improving and expects to ramp up operations in the
coming quarters. The company has also participated in a good amount of
tenders in the water and oil & gas segments. Jindal Saw expects
additional orders in the next few months.
Higher debt continues to weigh; maintain HOLD…
Going forward, we have modelled sales volume of 0.91 million tonne (MT)
for FY16E (downward revised from 1.2 MT earlier) and 1.19 MT for FY17E
(downward revised from 1.35 MT earlier). We have a cautious view on the
company due to elevated debt levels. We have valued the stock at 6x
FY17E EV/EBITDA. Subsequently, we have arrived at a target price of | 50
and assigned a HOLD recommendation to the stock.
Variance analysis
Comments
Topline came in lower than our estimate
Other income came in higher than our estimate
Standalone Operations
Total Operating Income
Other Income
Q3FY16
1,077.0
55.4
Q3FY16E
1,350.5
39.6
Q3FY15
1,777.4
34.7
YoY (%)
-39.4
59.6
Q2FY16
1,345.0
43.8
QoQ (%)
-19.9
26.5
Employee Expenses
Raw Material Expenses
105.9
496.2
105.3
714.7
90.1
963.0
17.6
-48.5
108.4
768.1
-2.3
-35.4
Other Expenses
295.2
341.2
485.8
-39.2
279.8
5.5
EBITDA
EBITDA Margin (%)
Depreciation
Interest
Exceptional Item
179.6
16.7
59.9
84.5
-10.2
189.2
14.0
61.6
85.5
0.0
238.5
13.4
62.1
69.9
-40.1
-24.7
326 bps
-3.5
21.0
-74.5
188.7
14.0
60.2
82.7
-17.9
-4.8
265 bps
-0.5
2.2
-43.0
PBT
Total Tax
80.4
25.8
81.7
24.5
101.3
39.3
-20.6
-34.4
71.7
-29.4
12.2
-187.7
PAT from ordinary activities
Extraordinary items
54.6
15.4
57.2
0.0
61.9
0.0
-11.8
NA
101.1
0.0
-46.0
NA
Net Profit for the period
39.2
57.2
61.9
-36.6
101.1
-61.2
Extraordinary items (net of tax expense) represents diminution in value
of investments in overseas subsidiaries
Ensuing PAT came in lower than our estimate
145,573
200,000
215,600
-32.5
198,858
-26.8
Pipes sales volume came in lower than our estimate
Key Metrics
Sales volume
(Pipe ) (in tonne)
Employee expense came in line with our estimate
Raw material expense came in lower than our estimate
EBITDA came in lower than our estimate
EBITDA margin came in higher than our estimate
Depreciation expense came in line with our estimate
Interest expense came in line with our estimate
Exceptional items primarily represent net result of amounts on account
of reinstatement of foreign exchange denominated assets and liabilities
(other than long term foreign exchange denominated loans)
PBT came in broadly in line with our estimate
Source: Company, ICICIdirect.com Research
Change in estimates (Cons)
FY16E
(| Crore)
Old
New
Total Op. Income
9,273.7
8,367.5
EBITDA
1107.8
1030.9
EBITDA Margin (%)
11.9
12.3
Adj PAT
369.5
261.1
Currency (US$/|)
60.0
65.0
Source: Company, ICICIdirect.com Research
% Change
Old
-9.8
10,920.2
-6.9
1387
37 bps
12.7
-29.3
464.7
8.3
60.0
FY17E
New
% Change
10,382.4
-4.9
1352.9
-2.5
13.0
33 bps
406.1
-12.6
65.0
8.3
Comments
Topline revised downwards for FY16E and FY17E
EBITDA estimate revised downwards
Margins revised upwards for FY16E and FY17E
PAT estimate revised downwards
We have incorporated a weaker rupee in our assumptions
Assumptions
Pipe Sales volume (in lakh tonne)
Source: Company, ICICIdirect.com Research
Current
FY16E
FY17E
9.1
11.9
ICICI Securities Ltd | Retail Equity Research
Earlier
FY16E
FY17E
12.0
13.5
Comments
Downward revised estimates
Page 2
Company Analysis
Utilisation level of saw pipe segment, key monitorable, going forward
Over the last couple of years, the saw pipe segment has been operating
at muted capacity utilisation levels. The current order book of the large
diameter pipe segment (LSAW and HSAW) is ~5,50,000 tonnes. During
Q3FY16, production and dispatches were subdued on account of
pressure on liquidity on domestic buyers. The management has guided
that the situation is improving and expects to ramp up operations in the
coming quarters. The company has also participated in a good amount of
tenders for water and oil & gas segments. Jindal Saw expects additional
orders in the next few months.
Over a medium to longer term horizon, within the water sector segment,
specific and renewed focus of the Government of India on infrastructure,
including urbanisation, is expected to accelerate. The management
expects the domestic economy to need more pipelines, primarily for
water and industrial applications.
Net debt at consolidated level to remain at elevated levels
As of December 31, 2015, the net debt of the company (standalone) was
~| 4807.5 crore (~US$728 million) including ECB/long term and funds
working capital & other unsecured loans. This includes working capital
loans of | 2434.3 crore (~US$369 million), which remained at an elevated
level due to higher order book, inventory and receivables, etc.
Exhibit 1: Net debt levels at consolidated level to remain elevated
7500
7192
7171
FY15
FY16E
6681
5757
6000
(| crore)
4615
4500
3000
1500
0
FY13
FY14
FY17E
Net Debt
Source: Company, ICICIdirect.com Research
ICICI Securities Ltd | Retail Equity Research
Page 3
Key takeaways from conference call and other highlights
ICICI Securities Ltd | Retail Equity Research
•
In terms of geographical break-up, sales in India contributed 94%
while sales outside India (exports) contributed the balance 6%
•
Blended EBITDA/tonne for the quarter came in at ~| 14500/tonne
(Q2FY16: ~| 10133/tonne) of sale of total pipes and pig iron of
150036 tonnes (Q2FY16 -213341 tonnes). This also includes the
impact of job work business done by the company during the
quarter. EBITDA for pellet was ~| 750/tonne
•
The company produced ~54000 tonnes of SAW pipes, which
corresponds to the planned production and delivery schedules.
Additionally, during the quarter, Jindal Saw also executed orders
in the SAW pipe business segment for the job work with
comparatively better profitability
•
With respect to DI pipes and pig iron unit, the company produced
more than 1.01 lakh tonnes DI pipes and 3300 tonnes of pig iron.
While dispatches in DI pipe during the quarter got impacted on
account of pressure on liquidity primarily on domestic buyers.
The situation is improving and sales are expected to ramp up in
the coming quarters. The current order book in the DI segment is
~600000 tonnes of DI pipes, which is the all-time high for the
segment. Due to a fall in commodity prices, the company expects
sale prices to be softer for this segment
•
The seamless pipe segment has witnessed an improvement
mainly due to diversification in product portfolio where the
company started catering to niche/premium segment e.g. T91, 13
crome, ball bearing industry, etc. Seamless pipe demand in oil &
gas remained weaker due to dumping of imported material in
India primarily from China and imposition of anti-dumping duty by
North America and Europe. In general, on account of continued
weakness in oil prices, demand for OCTG pipes remained much
weaker. The trend is likely to continue over the short to medium
term. The production of seamless pipe in Q3FY16 was ~23000
tonnes compared to ~21000 tonnes in Q2FY16
•
Due to the sharp decline in iron ore prices and availability of
cheaper products in the market, operations in the pellet plant
were contained while the company produced ~308000 tonnes of
pellets in Q2FY15. The company has seen some improvement in
prices due to revocation of export duty on iron ore. The company
is also working on costs control measures to remain competitive
•
The current order book has ~900000 tonnes of pipe orders (DI
and HSAW) for the water sector, which is primarily catering to the
domestic market
•
The company’s product profile comprises only 35% from the oil &
gas sector. Continued weakness in oil prices on account of oversupplied market conditions coupled with the geo-political and
war-like situation in the MENA region may have a negative impact
on new demand for pipes needed in this sector, OCTG products,
etc. Further, due to a fall in commodity prices, sales prices are
expected to weaken. The current order book includes more than
300000 tonnes pipe orders from the oil & gas sector. In addition,
the company has orders for job work for the oil & gas sector
•
The company is currently undertaking a restructuring process,
which is likely to take three to six months to be completed,
subject to approval from concerned authorities
Page 4
Valuation
Going forward, we have modelled sales volume of 0.91 million tonne (MT)
for FY16E (downward revised from 1.2 MT earlier) and 1.19 MT for FY17E
(downward revised from 1.35 MT earlier). We have a cautious view on the
company due to elevated debt levels. We have valued the stock at 6x
FY17E EV/EBITDA. Subsequently, we have arrived at a target price of | 50
and assigned a HOLD recommendation to the stock.
Exhibit 2: Valuation matrix
Sales
Sales Growth
EPS
EPS Growth
PE
EV/EBITDA
RoNW
RoCE
(| Crore)
YoY (%)
(|)
YoY (%)
(x)
(x)
(%)
(%)
FY14
6655.9
-1.6
-3.1
353.4
NA
11.0
-2.4
3.3
FY15
8324.7
25.1
0.9
LP
52.7
9.1
0.7
4.6
FY16E
8367.5
0.5
9.0
908.6
5.2
8.3
6.7
5.4
FY17E
10382.4
24.1
14.0
55.5
3.4
5.9
9.5
7.9
Source: Company, ICICIdirect.com Research
ICICI Securities Ltd | Retail Equity Research
Page 5
Company snapshot
200
180
160
140
120
100
80
Target Price: | 50
60
40
20
0
Jan-10
Jul-10
Jan-11
Jul-11
Jan-12
Jul-12
Jan-13
Jul-13
Jan-14
Jul-14
Jan-15
Jul-15
Jan-16
Jul-16
Jan-17
Source: Bloomberg, Company, ICICIdirect.com Research
Key events
Date
Jan-08
Event
The company receives an | 800 crore order from Cairn Energy India for supply of line pipes, tracer tube, insulation and bends for Barmer Salaya pipeline project of
Cairn. The pipeline project, from Mangala oilfield to Salaya, will cover over 600 km with a weight of about one lakh tonne
May-08
The company allots 26,00,000 warrants and 27,30,000 - 9.5% compulsorily convertible debentures (CCDs), both convertible into equity shares of the company at |
819 each to Anbeeco Investments Ltd, Cyprus. Anbeeco Investments belongs to the promoter group of Jindal Saw
Anbeeco Investments Ltd declines to convert the warrants allocated to it by the company. Consequently, the advance amount of @ 10% of per warrant stands
forfeited in accordance with Sebi guidelines
The company announces the receipt of orders/letter of award (LoA) aggregating to more than | 1000 crore (US$210 million) for supply of large diameter pipes and
ductile iron pipes in domestic and export markets. The total order book now stands at US$750 million (approximately | 3600 crore)
The company executes a mining lease agreement for 30 years with the Rajasthan Government for iron ore mines in the state. The mines have ~180 MT of reserves
of various categories of iron ore, based on initial estimates
The company makes full and final payment towards redemption of foreign currency convertible bonds (FCCBs) outstanding as on date
Apr-09
Jun-09
Jan-11
Jul-11
Nov-11
Jan-13
May-13
The company announces the receipt of order/letter of award aggregating to ~ | 1000 crore for supply of large diameter pipes (L saw pipes) and ductile iron pipes for
various export markets. These orders are scheduled to be executed gradually in the next 12 months
Morgan Stanley raises its stake in the company to about 5%, following additional 2.44% stake buying through open markets
The company reports dismal results for FY13. Reports a loss at the PAT level amounting to | 19 crore vis-à-vis | 189 crore profit in FY12
Exhibit
Valuation
matrixOfficer & wholetime director with effect from July 1, 2013. Mr Kumar has earlier
The company announces the appointment of Neeraj Kumar
as 3:
Group
Chief Executive
worked with Jindal Saw Ltd as Director (Finance) & CFO from 2002 to 2006Sales Sales Growth
EPS EPS Growth
PE
EV/EBITDA RoNW
RoCE
Source: Company, ICICIdirect.com Research
(| Crore)
YoY (%)
(|)
YoY (%)
(x)
(x)
(%)
(%)
Jul-13
Top 10 Shareholders
Rank
1
2
3
4
5
6
7
8
9
10
Name
Jindal Organisation
Sigmatech, Inc.
Four Seasons Investments, Ltd.
Danta Enterprises Pvt. Ltd.
Reliance Capital Asset Management Ltd.
HSZ (Hong Kong) Limited
OPJ Trading Pvt. Ltd.
Dimensional Fund Advisors, L.P.
Jindal (Abhyuday)
Jindal (Deepika)
Shareholding
FY14
6655.9
-1.6
-3.1
353.4Pattern
NA
(in %)
Sep-14
LatestFY15
Filing Date % O/S8324.7 Position 25.1
Change (m) 0.9
LP 71.7Dec-14
Promoter 1120.4
46.3 5.9 46.3
30-Sep-2015
17.89561.1 54.19M 14.9 -60.010.9
FY16E
18.1
11.5
30-Sep-2015
9.9
30.12M
0.0 FII
FY17E
11236.4
17.5
16.3
49.7
3.9
11.8
13.1
30-Sep-2015
9.3
28.31M
0.0 DII
Source: Company,7.7
ICICIdirect.com
23.8
29.1
30-Sep-2015
23.57MResearch
23.6 Others
31-Dec-2014
6.7
20.25M
0.6
30-Sep-2015
3.7
11.37M
0.0
30-Sep-2015
2.6
7.77M
7.8
30-Nov-2015
2.3
6.90M
0.0
30-Sep-2015
1.8
5.57M
0.8
30-Sep-2015
1.8
5.56M
0.0
11.8
Mar-15
9.7
48.8
8.4
10.9
6.1
13.2
27.1
-2.4
Jun-15
0.7
51.3
8.0
10.2
10.7
13.2
25.4
3.3
Sep-15
4.6
51.3
5.5
10.2
8.2
13.7
24.9
Source: Reuters, ICICIdirect.com Research
Recent Activity
Buys
Investor name
Danta Enterprises Pvt. Ltd.
OPJ Trading Pvt. Ltd.
Sahyog Tradecorp Pvt. Ltd.
Kuwait Investment Authority
Value
23.0
7.6
5.2
3.3
Shares
23.6
7.8
5.3
3.4
Sells
Investor name
Jindal Organisation
Anbeeco Investments, Ltd.
Canara Robeco Asset Management Company Ltd.
Pental Holding, Ltd.
Van Eck Associates Corporation
Value
-58.5
-12.3
-1.1
-0.9
-0.2
Shares
-60.0
-13.0
-1.2
-0.8
-0.2
Source: Reuters, ICICIdirect.com Research
ICICI Securities Ltd | Retail Equity Research
Page 6
Financial summary (Consolidated)
Profit and loss statement
(Year-end March)
(| crore)
Cash flow statement
(| crore)
FY14
FY15
FY16E
FY17E
Total Operating Income
6655.9
8324.7
8367.5
10382.4
Raw Material Expenses
3719.4
4274.3
4260.7
5308.4
521.2
683.2
664.9
775.3
Other expenses
1775.3
2431.5
2411.0
2945.8
Total Operating Expend.
6015.8
7389.0
7336.6
9029.5
(Inc)/dec in Investments
79.0
(232.3)
289.7
640.1
935.7
1030.9
1352.9
(Inc)/dec in Fixed Assets
(850.3)
(1,302.5)
(200.0)
Employee Expenses
EBITDA
Growth (%)
(Year-end March)
FY14
FY15
FY16E
FY17E
(Inc)/dec in Current Assets
(400.6)
(1,630.8)
(52.5)
(1,249.3)
Inc/(dec) in CL and Provisions
(123.6)
990.8
(380.9)
1,111.3
51.1
(7.2)
15.4
(237.4)
(199.6)
256.4
Others
CF from operating activities
Others
(14.7)
6.0
46.2
10.2
31.2
Depreciation
321.3
402.9
413.2
440.2
CF from investing activities
Interest
392.0
539.8
460.9
442.9
Issue/(Buy back) of Equity
95.3
129.1
152.5
114.3
Inc/(dec) in loan funds
914.7
PBT before EI
22.2
122.1
309.2
584.1
Dividend paid & dividend tax
Exceptional Item (EI)
-67.7
-56.1
-23.5
0.0
PBT After EI
-45.6
66.0
285.6
Total Tax
54.7
21.3
21.4
Other Income
Net Profit Before EO
EO (net of tax)
(100.2)
44.7
264.2
-
(1,534.8)
2.8
89.6
-
(200.0)
(200.0)
-
1,869.0
(300.0)
(300.0)
(32.3)
(32.3)
(32.3)
(32.3)
Inc/(dec) in Share Cap
33.5
106.2
(3.1)
14.8
584.1
Others
(40.2)
(3.5)
192.7
CF from financing activities
875.7
1,942.1
Net Cash flow
(147.7)
207.8
10.6
190.8
Opening Cash
289.7
142.0
349.8
360.4
Closing Cash
142.0
349.8
360.4
551.2
391.3
0.0
-30.0
Minorites, Associates,etc
-14.7
-11.2
-12.3
-14.8
PAT After MI before EO
-85.6
25.9
261.1
406.1
Growth (%)
353.4
LP
908.6
55.5
-3.1
0.9
9.0
14.0
FY15
FY16E
EPS (|)
(786.0)
708.4
-15.4
0.0
(335.4)
(317.6)
Source: Company, ICICIdirect.com Research
Source: Company, ICICIdirect.com Research
Balance sheet
(Year-end March)
(| crore)
FY14
Key ratios
FY17E
Equity Capital
Total Shareholders funds
Total Debt
Deferred Tax Liability
Minority Interest / Others
Total Liabilities
55.3
3568.4
58.0
3689.8
58.0
3918.6
58.0
29.2
129.2
127.2
135.1
148.0
1.0
1.0
1.0
1.0
EBITDA Margin
9.6
11.3
12.3
13.0
PBT / Total Operating income
0.3
1.5
3.7
5.6
(1.3)
0.3
3.1
3.9
7531.9
7231.9
108.6
108.6
108.6
DPS
Operating Ratios (%)
157.8
154.3
166.6
181.4
9805.3
11784.9
11726.0
11814.5
8199.2
8699.2
9099.2
2240.5
2680.7
Net Block
5372.4
6372.0
6458.7
6418.5
659.7
559.7
259.7
59.7
6032.2
6931.7
6718.5
6478.2
153.6
153.6
153.6
153.6
74.6
306.9
17.2
17.2
Inventory
1919.1
3002.4
2918.3
3635.9
Debtors
1744.7
2060.0
2175.6
2699.3
Loans and Advances
1342.1
1573.6
1593.6
1600.6
8.1
8.7
9.7
10.7
142.0
349.8
360.4
551.2
Total Current Assets
5155.9
6994.5
7057.6
Current Liabilities
1537.4
2501.4
2080.5
Provisions
14.0
9.0
23.2
7831.9
1827.3
Cash
FY17E
0.9
115.8
1424.3
other assets
FY16E
14.8
5962.9
6796.8
Investments
FY15
8.5
BV
Less: Acc Depreciation
Goodwill
FY14
(3.1)
4292.3
Gross Block
Total Fixed Assets
EPS
Cash EPS
Assets
Capital WIP
(Year-end March)
Per share data (|)
Liabilities
Reported PAT Margin
Inventory days
188.3
256.4
250.0
250.0
Debtor days
95.8
90.5
95.0
95.0
Creditor days
50.0
52.0
60.0
63.0
RoE
(2.4)
0.7
6.7
9.5
RoCE
3.3
4.6
5.4
7.9
RoIC
3.4
4.8
5.6
8.3
Return Ratios (%)
Valuation Ratios (x)
P/E
NA
52.7
5.2
3.4
11.0
9.1
8.3
5.9
EV / Net Sales
1.1
1.0
1.0
0.8
Market Cap / Sales
0.2
0.2
0.2
0.1
8497.7
Price to Book Value
0.4
0.4
0.3
0.3
3151.8
Solvency Ratios
5.3
EV / EBITDA
73.5
100.3
140.3
180.3
Debt/EBITDA
9.3
8.4
7.3
Current Liabilities & Prov
1610.9
2601.7
2220.8
3332.2
Debt / Equity
1.7
2.1
1.9
1.7
Net Current Assets
3545.0
4392.8
4836.8
5165.5
Current Ratio
3.2
2.7
3.2
2.6
Application of Funds
9805.3
11784.9
11726.0
11814.5
Quick Ratio
2.0
1.5
1.9
1.5
Source: Company, ICICIdirect.com Research
ICICI Securities Ltd | Retail Equity Research
Source: Company, ICICIdirect.com Research
Page 7
ICICIdirect.com coverage universe (Pipes)
CMP
Sector/Company
Jindal Saw
Maharashtra Seamles
(|)
EPS (|)
M Cap
TP (|) Rating
(| Cr)
FY15
FY16E
P/E (x)
FY17E
EV/EBITDA (x)
FY15 FY16E FY17E
ROCE(%)
FY15 FY16E FY17E
ROE(%)
FY15 FY16E FY17E FY15 FY16E FY17E
47
50 Hold
1431.4
0.9
9.0
14.0
52.7
5.2
3.4
9.1
8.3
5.9
4.6
5.4
7.9
0.7
6.7
9.5
149
135 Hold
1021.8
17.6
4.0
13.0
9.6
41.9
13.0
15.0
40.9
12.5
2.0
0.1
2.0
4.0
0.9
3.0
Source: Company, ICICIdirect.com Research
ICICI Securities Ltd | Retail Equity Research
Page 8
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;
Pankaj Pandey
Head – Research
[email protected]
ICICIdirect.com Research Desk,
ICICI Securities Limited,
1st Floor, Akruti Trade Centre,
Road No 7, MIDC,
Andheri (East)
Mumbai – 400 093
[email protected]
ICICI Securities Ltd | Retail Equity Research
Page 9
Disclaimer
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ICICI Securities Ltd | Retail Equity Research
Page 10