Visaka Industries Ltd. share price target

Visaka Industries' (VIL) business has been impacted due to severe disruption in operations caused by the novel coronavirus, or COVID-19

Sales of Visaka Industries Ltd. (VIL) degrew 9% YoY to INR 228cr (4% below our estimates).

Visaka Industries Ltd. (VIL) has reported sales of INR 353cr, grew by 2.1% YoY (3.3% above our estimates).

Visaka Industries Ltd. (VIL) has reported sales of INR 300cr, grew by 15.5% YoY (~12% above our estimates). This growth was on the back of good topline performance by both the segments.

The company reported numbers in-line with our estimates; contraction in margins impacted profitability.

Improves Capacities & Volumes, Margins to Expand Ahead: Visaka Q2FY19 results came in line with our estimates. YoY Revenue grew by24.8% on the back of improved volumes. The volume growth in cement asbestos is recorded at 9.4% along with a 22% growth in fibre boards segment.

Visaka Industries Ltd. (VIL) has reported healthy quarterly performance and beat our estimates on all counts. VIL has reported a sales of INR 251cr, grew ~25% YoY

We hosted Visaka Industries' (VIL) management for a non-deal roadshow. The management guided that good demand across all three business segments (ACS, CBP and Yarn) has accelerated growth outlook for FY19. However, the INR depreciation during Q2FY19 and rising diesel prices will drag down ACS as well as total margin in Q2FY19. Management expects to pass on this cost increase during H2FY19, through price increase (aided by robust demand in ACS). VIL's innovating and patented product ATUM is expected to go on sale from Q3FY19. We remain positive on VIL owing to its strong positioning across all...

Improved Capacities to Fuel Revenue Growth: Visaka Q1FY19 results came in line with our estimates. Roofing Industry during the quarter grew by 10%. Earnings witnessed a 32.2% jump aided by a YoY revenue growth of 11.8% & surge in other income due to certain insurance claims, adjusted to which the earnings growth would have been in 8%- 9% range.

Visaka Industries Ltd. (VIL) has reported yet again strong quarterly earnings mainly on acccount of improvement in margins and an uptick in sales.

Visaka Industries Ltd. (VIL) has reported strong Q4FY18 earnings mainly on acccount of improvement in margins. Visaka's gross margin expanded by 430bps y-o-y to ~52%...

Set to grow: FY18 full year earnings grew by 55.6% on account of higher revenue & improved EBITDA margins (263 bps expansion to reach 14.8% due to stable raw material expenses) vs FY17. Full year revenue witnessed a 5.4% growth owing to improved volumes across segments. On account of new product launches, enhanced capacities, brand building efforts & de-risking product mix, we expect the revenue to grow at 9.5% CAGR during FY18-20E. We re-iterate our BUY rating with a target price of Rs.900 with an upside potential of 20%.

Visaka Industries was established in 1985. Visaka has two main divisions; building products division which manufactures cement asbestos sheets and fiber cement boards & panels (CBPs) and the textile..

We initiate coverage on Visaka as a BUY with a price objective of Rs

Well Diversified Product Portfolios: The company enjoys a strong position in cement asbestos, V-board and yarn business. During FY17, adverse market conditions caused by demonetization and destocking ahead of GST implementation had negative bearing on its sales.

Visaka Industries posted a good set of numbers for 4QFY2016. Although the top-line declined, the performance on the operating and bottom-line fronts was favorable. The top-line declined by 3.3% yoy to Rs276cr. On the operating front the EBITDA grew by 6.6% yoy to Rs29cr and the EBITDA margin improved by 96bp yoy to 10.4%. There was an exc..

For 2QFY2016, Visaka Industries reported a mixed set of numbers. The top-line, at Rs192cr (8.2% yoy decline), was marginally below our estimate of Rs205cr. The EBITDA declined by 21.6% yoy to Rs15cr and the EBITDA margin contracted by 135bp yoy to 7.9%, owing to a 109bp yoy increase in raw material cost as a percentage of sales to 50.2% and 157bp yoy increase in employee expense to 8.0% of sales. Other expenses declined by 131bp yoy to 33.9% of sales. We had built in an EBITDA margin estimate of 6.4%. Interest expense at Rs5cr was higher by 19.7% on a yoy basis. Consequently, the net profit declined by 78.9% yoy to Rs0.8cr, against our estimate of Rs1.5cr. Near term pressure for Asbestos Cement Products (ACP); Overall long term prospects intact: The ACP division of the Building Products segment is likely to face pressure in the near term on account of subdued rural sentiment. However, the company is a major player with ~17% market share. With the rural economy expected to improve in the longer run, we expect the division to perform well going forward. The Building products segment is also supported by strong performance of its V-boards division which is...

Visaka industries limited incorporated in 1985, is a well diversified company with strong presence in Fibre cement sheets, yarn, and building products. It has an installed capacity of...