Linc Pen & Plastics (LPPL)s 2QFY2016 results outperformed our estimates on the bottom-line front. The companys top-line for the quarter grew 5% yoy. On the operating front, the company reported margin improvement, primarily on account of lower raw material costs. Further, on the bottom-line front, the company reported a strong growth on account of a favorable operating performance and lower interest costs. Top-line grew ~5%: The companys top-line grew by ~5% yoy to ~Rs88cr (which is below our estimates of ~Rs89cr), mainly due to lower growth in Domestic (5.0% yoy growth to ~Rs64cr) and Export sales (4.6% yoy growth to ~Rs24cr). Exports have recovered considering the segment posted a decline of 5% in FY2015. PAT grew ~23% yoy: The reported net profit grew by ~23% yoy to ~Rs5cr (our estimate was of ~Rs4cr) on account of falling material prices and lower interest costs with the company having repaid a significant amount of its debt in FY2015. Outlook and valuation: Going ahead, we expect LPPL to report a top-line CAGR of ~8% over FY2015-17E to ~Rs371cr owing to strong domestic as well as export sales. On the bottom-line front, we expect the company to report ~17% CAGR over FY2015-17E. This would...