Butterfly Gandhimathi Appliances Ltd. share price target

Butterfly Gandhimathi (BGAL) has approved sale of 55% stake held by promoter for a consideration of | 1410 crore (including trademark cost of | 30 crore) to Crompton Greaves Consumer (CGCEL). The deal values the company at | 2526 crore (1.7x FY24E EV/sales, 25x FY24E earnings) CGCEL will also have to launch mandatory open offer to the public shareholders of Butterfly, for acquiring up to 26% stake in Butterfly at a price of | 1,433.90 per equity share, aggregating up to | 667 crore. The total acquisition cost (including open offer) would be up to | 2,077 crore...

BGAL has shown consistent improvement in financial performance parameters with working capital days, return ratios getting significantly enhanced in FY21. We expect it to maintain RoCE of ~30%+ in FY23E Expect sustained revenue growth and improved margin, going ahead. We...

The company is a market leader in India for SS LPG stoves & table top wet grinders and major supplier of mixer grinders & pressure cookers Over the last three years BGAL has enhanced its focus on modern trade/online distribution channels to capture higher revenue growth Q2FY22 Results: BGAL reported strong revenue growth, which led the company...

Butterfly Gandhimathi (BGAL) reported strong revenue growth of 70% YoY to | 298 crore in Q3FY21. The healthy growth was on the back of enhanced customer interest in kitchen appliances due to accentuated preference for home cooked food. Revenue growth was visible across all channels except gas dealers. Though gross margins were lower (change in product, channel mix) by 400 bps YoY to 41.7%, EBITDA margins expanded 480 bps YoY to 12% due to positive operating leverage. On the back of strong operational...

Butterfly Gandhimathi (BGAL) reported healthy revenue growth of 20% YoY to | 288.9 crore in Q2FY21. The strong growth was on the back of channel filling owing to lower trade inventory levels and renewed customer interest in in kitchen appliances as majority of people preferred home cooked food. EBITDA margins expanded 310 bps YoY to 11.9% owing to positive operating leverage and better gross margins (up 240 bps YoY). On the back...

Q4FY20 has been characterised by demand disruption in second half of March due to national lockdown announced due to spread of Covid-19. Butterfly Gandhimathi (BGAL) reported weak Q4FY20 results, with revenues down 26% YoY to | 110.6 crore (as per management, BGAL lost revenue worth | 40 crore due to Covid-19 disruptions). Kitchen appliances revenues declined 27% YoY to | 83 crore while cooker/cookware revenues declined 6% to | 21 crore. Gross margins improved 397 bps YoY to 44.3% owing to a favourable product mix and benign RM prices. However, given the fixed...

The management is targeting revenue growth of ~ 15-20% over the next few years with a gradual improvement in margin profile, which continues to remain lower at ~ 7% compared to its peers (EBITDA margin: 13-15%). The key monitorable would be sustaining the growth and managing the working capital. We value the company on EV/sales and assign a multiple of 0.6x with...

Revenues in Q3 grew 13% YoY to | 161 crore. On the segmental front, kitchen appliances grew 11% YoY to | 123 crore whereas cooker/cookware segment grew robustly by 30% YoY to | 31 crore Gross margins for the quarter declined 195 bps YoY to 40.2%. Employee expense increased 13% YoY to | 18.1 crore and, as a percentage to sales, remained flattish at 11.3%. Other expense as a percentage to sales (down 65 bps YoY 23%) curtailed the decline in EBITDA margin. Subsequently, EBITDA margins declined 125 bps...

ICICI Securities Ltd | Retail Equity Research Revenues for Q2 grew 8.2% YoY to | 217.3 crore. The tepid topline growth was probably on account of weak Onam sales due to floods in Kerala and shift of festival season to Q3FY19. On the segmental front, kitchen appliances grew 7% YoY to | 175.1 crore whereas cooker/cookware segment grew robustly by 10% YoY to | 33 crore Gross margins for the quarter fell 86 bps YoY to 39.4%. Employee expense increased 26% YoY to | 19.3 crore. Lower other expense as...

ICICI Securities Ltd | Retail Equity Research Butterfly Gandhimathi (BGAL) reported topline growth of 44% YoY to | 124.4 crore. On the segmental front, kitchen appliances grew 25% YoY to | 96.4 crore whereas cooker/cookware segment grew robustly by 52% YoY to | 18.5 crore, albeit on a lower base EBITDA came in at | 9.3 crore vs. EBITDA loss of | 2.4 crore in Q1FY18. With positive operating leverage kicking in (employee & other expenses as a percentage to sales down 55 bps, 886 bps YoY,...

BGAL reported a strong performance with topline growth of 30% YoY to | 110.4 crore. On the segmental front, kitchen appliances grew 6.8% YoY to | 83.5 crore whereas cooker/cookware segment grew robustly by 50.3% YoY to | 18.6 crore BGAL reported EBITDA of | 9.3 crore compared to EBITDA loss of | 10.5 crore in Q4FY17. Gross margins improved significantly by 120 bps YoY to 44.1%. Furthermore, a decline in other expenses by 16% YoY to | 25.6 crore, boosted EBITDA margins. The resultant EBITDA...

ICICI Securities Ltd | Retail Equity Research Butterfly Gandhimathi Appliances (BGAL) reported a robust set of Q3FY18 numbers with a significant recovery on both revenue and profitability front. Low base effect of demonetisation also kicked in Revenues grew robustly by 76% YoY to | 141.0 crore. In the segment per se, kitchen appliances and cooker/cookware grew 46% and 125.6% YoY to | 109 crore and | 24 crore, respectively BGAL reported EBITDA of | 8.7 crore vs. EBITDA loss of | 19.4 crore...

Butterfly Gandhimathi Appliances (BGAL) reported strong set of Q2FY18 results. Revenues for the quarter grew by 29.6% YoY to | 201.0 crore. The growth was supported by healthy traction in cooker/cookware and appliances segment. EBITDA margins for the quarter expanded by 250 bps YoY to 8.4%. The margin expansion was driven by improvement in gross margins (up 136 bps YoY) and positive operating leverage owing to strong topline growth (employee expenses down 139 bps YoY)....

The company reported a loss at the EBITDA level of | 15.1 crore vs. EBITDA profit of | 13.6 crore in Q4FY16. EBITDA loss was primarily on account of higher employee expense as percentage of sales (12.3% vs. 8.5% in Q4FY16) and higher other expenses as a percentage of sales (34.9% vs. 19.8% in Q4FY16) owing to negative operating leverage as utilisation levels remained low Owing to a disappointing operational performance, BGAL reported a net loss of | 20.9 crore vs. net profit of | 0.6 crore in Q4FY16...

ICICI Securities Ltd | Retail Equity Research Butterfly Gandhimathi Appliances (BGAL) reported a disappointing set of Q3FY17 numbers performance on account of absence of...

ICICI Securities Ltd | Retail Equity Research Butterfly Gandhimathi Appliances (BGAL) reported a disappointing performance on account of absence of government orders and a decline in the branded institutional business on account of release of lower LPG connections during the quarter Revenues de-grew 50% YoY to | 155 crore. The decline in topline was owing to absence of government order execution, which in Q2FY16 was to the tune of | 164 crore. Branded sales declined 4%...

Butterfly Gandhimati Appliance Ltd (BGAL) is a leading manufacturer and marketer of domestic kitchen and domestic electrical appliance.

Butterfly Gandhimathi Appliances (BGAL) reported a disappointing performance on account of the absence of government orders and decline in branded institutional business on account of release of lower LPG connections during the quarter BGAL reported an EBITDA loss of | 1.1 crore in Q1FY17 vs. profit of...

Butterfly Gandhimathi Appliances' (BGAL) Q4FY16 revenues grew 4.7% YoY to | 156.3 crore on the back of Tamil Nadu Civil Supplies order execution (| 57.31 crore) in Q4FY16...