Prima Plastics' (Prima) Q1FY17 result came above our expectations. Standalone revenues/EBITDA/PAT increased by 7.4%/56%/51% YoY to Rs205/20/15 mn. EBITDA margin improved 300bps YoY to 9.5% in Q1FY17. The benefit of lower RMC reflected in operational performance along with better cost management expanded margins. Further, higher operating profit was translated into healthy net profit growth of 51% YoY to Rs20 mn in Q1FY17. The company is expanding its capacity in West Africa & India and foraying its presence in Central America (through JV) which is expected to complete by early Q3FY17. Post expansion, its capacity would increase from current 14,000mt to 22,500mt. Going forward, capacity expansion, new...