Simplex Infrastructures Ltd. share price target

Simplex Q4FY16 operational performance was below our expectations. Revenues of Rs 15.1bn (down by 2% YoY) was lower than our estimate of Rs 15.8bn. EBITDA came at Rs 1.33bn (-3% YoY), ~ 22% below our estimate of Rs 1.69bn as the margin came lower at 8.8% (-14 bps YoY) vs. estimate of 10.7%. PAT declined 29% YoY to Rs 158mn (vs. estimate of Rs 279mn) primarily led by weak operational performance. For FY16, revenue growth was muted at 4% YoY with EBITDA remained flat YoY due to working capital constraints. FY16 PAT increased 6% YoY led by higher other income & lower tax rate. Karvy maintain Buy with TP of Rs 295.

Trendlyne has 8 reports on SIMPLEXINF updated in the last year from 3 brokers with an average target of Rs 310. Brokers have a rating for SIMPLEXINF with 0 upgrade and 3 downgrades in past 6 months,1 upgrades and 4 downgrades in past 12 months.

Simplex Q4FY16 operational performance was below our expectations. Revenues of Rs 15.1bn (down by 2% YoY) was lower than our estimate of Rs 15.8bn. EBITDA came at Rs 1.33bn (-3% YoY), ~ 22% below our estimate of Rs 1.69bn as the margin came lower at 8.8% (-14 bps YoY) vs. estimate of 10.7%. PAT declined 29% YoY to Rs 158mn (vs. estimate of Rs 279mn) primarily led by weak operational performance. For FY16, revenue growth was muted at 4% YoY with EBITDA remained flat YoY due to working capital constraints. FY16 PAT increased 6% YoY led by higher other income & lower tax rate.

Simplex Infrastructure's (SIL) topline de-grew 1.8% YoY to | 1511.7 crore and was marginally above our estimate of | 1466.2 crore The EBITDA margin contracted 16 bps YoY to 9.9% and was below...

ICICI Securities Ltd | Retail Equity Research With order inflow of ~| 3272 crore in 9MFY16, SIL's order book till Q3FY16 was strong at | 14,855 crore, 2.5x orderbook to bill ratio on a...

Simplex Infrastructures (Simplex) reported in-line set of numbers for 2QFY2016. The company reported a top-line of Rs1,392cr, up 11.5% yoy, but slightly below our expectation of Rs1,399cr. The EBITDA for the quarter stood at Rs143cr, ahead of our estimate of Rs141cr while the EBITDA margin expanded by 7bp yoy to 10.3%, for 2QFY2016. Stronger execution and almost in-line operating performance helped Simplex report a PAT of Rs14cr. The reported PAT margin of the company was almost flat on a yoy basis at 1.0% in 2QFY2016. Simplexs order book (including L1) as of 2QFY2016 stands at ~Rs18,321cr (order book to LTM sales ratio stands at 3.1x). Outlook and valuation: At the current market price of Rs319, the standalone EPC business is trading at FY2016E and FY2017E P/E multiple of 20.3x and 10.1x, respectively. (1) 10.6% top-line and 57.8% bottom-line CAGR during FY2015-17E, (2) strong order book of Rs18,321cr (OB to LTM sales ratio of 3.1x), and (3) scope for improvement in WC as % of sales ratio from 64% in FY2015 to 53% in FY2017E, should lead to improvement in D/E ratio from 2.2x in FY2015 to 1.8x in FY2017E. We have assigned a 1-year forward P/E multiple of 11.0x to...

Simplex Q2FY16 performance was in-line with our estimates. Net sales grew by 11% YoY to Rs13.9 bn (vs. our estimate of Rs 13.4 bn). EBITDA margin remained flattish YoY to 10.6% (largely in-line with our expectation of 10.8%). EBITDA at Rs 1.47bn (+7% YoY) and net profit of Rs 136 mn (+6% YoY) were also in-line with our estimates of Rs 1.46bn and Rs 135mn respectively.

Simplex Infrastructures (SIL) posted 12.2% YoY growth (highest in last 12 quarters) in Q1FY16 standalone sales to Rs15.1bn, in line with our expectations. Revenue growth for the quarter was driven by better execution in its key segments (Building and Urban).

Simplex Infrastructures (SIL) posted marginal 3.1% YoY rise in Q3FY15 standalone sales to Rs14.4bn, 2.7% lower than our expectations. Revenue growth for the quarter remained muted due to stretched working capital which affected execution. However, EBITDA margin improved by 131bps to 10.5% (in line with our expectation), due to lower raw material cost (which as a percentage of net sales declined to 34.6% vs 38.2% in Q3FY14).