GMM Pfaudler Ltd. share price target

GMM Pfaudler Ltd (GMM), for Q1FY21, reported a weak set of numbers. Revenue marginally grew by 2.8% YoY to INR 1544mn (est INR 1721mn) mainly due to fewer production days (two months) led by the extended lockdown. However, Q1FY21 revenue includes execution of a deferred order of Q4FY20 worth INR 150mn-200mn.EBITDA remained flat at INR275mn (est INR342mn) with 55ps YoY decline in margin from 18.4% in Q1FY20 to 17.8% in Q1FY21, due to adverse product mix mainly impacted by proprietary business, where EBIT margin declined by 755bps on YoY basis with 23% contribution in consolidated revenue. However, the Heavy engineering business has reported a strong growth of 565% in revenue along with 21.3% EBIT margin (vs 2.8%YoY) in Q1FY21. This, we believe partly led...

GMM Pfaudler Ltd (GMM), for Q4FY20, reported a decent set of numbers. Revenue de-grew by 5.3% YoY to INR 1318mn (est INR 1593mn) mainly due to a revenue loss of INR 300mn led by the nationwide lockdown. EBITDA showed growth of 13.4% YoY to INR225mn (est INR323mn) with 280ps YoY improvement in margin from 14.2% in Q4FY19 to 17.1% in Q4FY20, due to favourable product mix mainly led by Glass-lined business, where EBIT margin improved by 463bps on YoY basis with 63% contribution in consolidated revenue. However, the Heavy engineering business has dragged growth momentum with 59.5% de-growth in revenue and -18.6% EBIT margin (vs 2.1%YoY) in Q4FY20. The loss came up as GMM couldn't ship the order to their Middle East client due to lockdown followed by higher fixed overheads. As per the management, heavy engineering can add strong growth on the...

EBITDA in Q4FY20 stood at `225mn up ~13.4% Y-o-Y on the back of lower raw material costs and lower labour charges. Raw material costs and labour charges plunged 16%YoY and 11% YoY to `553mn and `80mn respectively in the mentioned period. Company's EBITDA margins were up at 17.1% from 14.2% in Q4FY19. Company's PAT plunged 12.9% Y-o-Y to `116mn in Q4FY20 on account of higher...

Continuing high growth momentum with margin expansion: Hold (Target upgrade) GMM Pfaudler Ltd (GMM), for Q3FY20, reported a strong set of numbers. On standalone basis revenue grew by 29.4% YoY to INR 1366mn (est INR 1364mn). EBITDA showed growth of 66.4% YoY to INR287mn (est INR263mn) with 466bps YoY improvement in margin from 16.3% in Q3FY19 to 21% in Q3FY20, due to favorable product mix mainly led by Glasslined business ,where EBIT margin improved by 366bps on YoY basis with 67% contribution in standalone revenue. Moreover, Heavy engineering and proprietary products business has also supported growth momentum with 52% growth in revenue and 18.9% EBIT margin (686bps YoY improvement ) in Q3FY20. As per the management, heavy engineering to add lot of growth on the back of healthy order book till Q2FY21 and expect further improvement in margins going forward. Current order book breakup includes 50% in Glass lined, 30% in heavy engineering and 20% in proprietary products. Net profit surged by 77.4% to INR 194mn (est. INR192mn) due to operationally strong performance and lower tax expense (22.8% vs 32.4%)....

GMM Pfaudler Ltd (GMM), for Q2FY20, reported a strong set of numbers.On standalone basis revenue grew by 37.2% YoY to INR 1361mn (est INR 1354mn). EBITDA showed growth of 65.9% YoY to INR267mn (est INR241mn) with 339bps YoY improvement in margin from 16.2% in Q2FY19 to 19.6% in Q2FY20, due to favorable product mix mainly led by Glasslined business ,where EBIT margin improved by 451bps on YoY basis with 62% contribution in revenue. Moreover, Heavy engineering business has also supported growth momentum with 48% growth in revenue and 12% EBIT margin in Q2FY20. As per the management, heavy engineering to add lot of growth on the back of healthy order book and expect further improvement in margins going forward. A Price increase has taken in GL segment, which is successfully passed on to the customers because of high demand. Current order book is equally distributed among Glass lined, heavy engineering and proprietary products. Net profit surged by 83.9% to INR 180mn (est. INR150mn) due to operationally strong performance and lower tax expense (16.1% vs 34.6%). GMM's Swiss based subsidiary Mavag AG posted revenue of...

GMM Pfaudler Ltd (GMM) in Q1FY20 posted cons. revenues of Rs. 150 Cr. (up 34%Y-o-Y & 8% Q-o-Q), growth is largely attributable of surge in demand, 42% YoY, for Glass Line Equipment (GLE) coming from specialty chemical and agro chemical industry.

GMM Pfaudler Ltd (GMM), for Q1FY20, reported a strong set of numbers. On standalone basis revenue grew by 39.4% YoY to INR 1,303mn (est INR 1,207mn). EBITDA showed growth of 56.8% YoY to INR239mn (est INR203mn) with 200bps YoY improvement in margin from 16.4% in Q1FY19 to 18.4% in Q1FY20, due to favorable product mix mainly led by Glasslined business ,which grew by 46% YoY with 74% contribution in revenue (vs 71% in Q1FY19). However, Heavy engineering business delivered poor performance with 40% decline in revenue and 2.8% EBIT margin compared to 22.1% in Q1FY19. As per the management, the decline in margin was due to cyclical nature of the business and expect improvement in margin going forward. Net profit surged by 61.2% to INR 147mn (est. INR125mn) due to operationally strong performance and lower tax expense (28.4% vs 34.4%). During the quarter, export share in revenue remained at 12%. Most of the export orders were mainly...

GMM Pfaudler Ltd (GMM) in Q4FY19 posted revenues of Rs. 121 Cr. (up 37% Y-o-Y, up 14% Q-o-Q) due to the excellent growth shown by non-Glass Line Equipment (non-GLE) segment. EBITDA for the quarter stood at Rs. 17 Cr. (up 18% Y-o-Y, down 1% Q-o-Q)

GMM Pfaudler Ltd (GMM), for Q4FY19, reported a decent set of numbers. Revenue grew at 37.4% YoY to INR 1,207mn (est INR 1,155mn). EBITDA showed growth of 17.9% YoY to INR170mn (est INR191mn) with 231bps YoY contraction in margin from 16.4% in Q4FY18 to 14.1% in Q4FY19, due to adverse product mix mainly led by Heavy engineering business ,which grew by 116% YoY with only 2.1% EBIT margin compared to 15.2% in Q4FY18. As per the management, the decline in margin was due to a single large order taken by the company for strategic reasons and is expected not to repeat going forward. Net profit surged by 27.9% to INR 108mn (est. INR112mn) due to operationally weak performance and lower tax expense (33.5% vs 39.7%). During the quarter, export share in revenue remained at 10%. Most of the export orders were mainly lead by Pfaudler Inc( Parent) network. Capacity Expansion in Glass lined Equipment business to tap increasing demand...

GMM Pfaudler Ltd (GMM) in Q3FY19 posted revenues of Rs. 106 Cr. (up 33% Y-o-Y, up 6% Q-o-Q) due to the excellent growth shown by Glass Line Equipment (GLE) segment.

We recently met Tarak Patel, Managing Director of GMM Pfaudler, to get an insight into the company's business model and growth prospects. GMM Pfaudler is a leading supplier of glass lined based equipment (reactors, storage tanks) in India, commanding > 50% domestic market share, finding critical application in the chemical & pharmaceutical industries. It has its manufacturing base in Karamsad, Gujarat. Pfaudler Inc, a world leader in glass lined equipment, purchased 40% of the company in 1987. They further increased their stake to 50.44%. The...

GMM Pfaudler Ltd (GMM) in Q2FY19 posted revenues of Rs. 99 Cr. (up 30% Y-o-Y, up 6% Q-o-Q) due to the excellent growth shown by both Glass Line (GLE) and Non-GLE segments. PAT for the quarter stood at Rs. 9.8 Cr. (up 40% Y-o-Y, up 8% Q-o-Q) led by the robust revenue growth and internal improvements

GMM Pfaudler Ltd (GMM) in Q1FY19 posted revenues of Rs 93 Cr. (up 35% Y-o-Y, up 6% Q-o-Q) due to stellar growth in both Glass Line (GLE) and Non-Glass Line Equipment (Proprietary Product) segment.

For Q1FY2019, GMM Pfaudler (GMM) posted a growth of 35.4%/63.9% yoy growth in revenue/ PAT amid ~494 bps margin expansion. The company is seeing good traction from its user industries like agrochemicals, which would drive 15-20% revenue growth in next two years. In view of robust demand, it is expanding its capacities by 25% in FY2019. Ou..

Strong Performance across verticals : Maintain BUY GMM Pfaudler Ltd (GMM), for Q1FY19, reported a strong set of numbers. Revenue grew at 35.4% YoY to Rs 932mn (est Rs 925mn). EBITDA showed growth of 93.4% YoY to Rs 153mn (est Rs146mn) with 494bps YoY increase in margin from 11.4% in Q1FY18 to 16.4% in Q1FY19 due to higher export revenue and lower power cost. Net profit inclined by 63.9% to Rs 91mn (est. Rs 88mn) due to operationally strong performance. During the quarter, export accounted for 10% of revenue compared to the...

GMM Pfaudler Ltd (GMM) in 4QFY18 posted revenues of Rs 88 Cr. (up 11% Y-o-Y, up 11% Q-o-Q) due to stellar growth in Glass Line Equipments (GLE)segment. It posted PAT of Rs 8.4 Cr (up 14% Y-o-Y, up 14% Q-o-Q) due to increased contribution of high margin GLE business as well as increase in exports.