Transpek Industry Ltd. share price target

Transpek Industry Limited (TIL) has posted revenue of INR 1,800mn with a 97.9% YoY increase, which was 11.7% above our estimate of INR 1,612mn. The revenue growth was mainly driven by strong volume recovery in key products due to higher offtake from MNC customers as the end-user market regained its momentum. Despite 329bps contraction in the gross margin, EBITDA margin improved by 183bps due to better cost management. The management is confident in enhancing the margin profile from the current level (guidance 18-20%) on the back of demand recovery in end-user industries and new product launches in the high margin category. TIL reported a PAT of INR 230mn compared to our estimate of INR 203mn due to better operational performance. Management is...

Transpek Industry Limited (TIL) has posted revenue of INR 1,217mn with a 63% YoY increase, which was 4.3% above our estimate of INR 1,167mn. The revenue growth was mainly driven by strong volume recovery in key products as higher off-take from MNC customers. EBITDA margin for the quarter stood at 14.8% lower than our estimate of 18.4% (EBITDA margin of 18.2% in Q4FY21, 11.9% in Q1FY21) due to an increase in key raw material costs along with higher freight cost. However, the management is confident of improving the margin profile from the current level (guided 16-20%) on the back of demand recovery in end-user industries and new product launches in the high margin category. TIL reported a PAT of INR 135mn compared to our estimate of INR122mn...