Grindwell Norton Ltd. share price target

Topline growth of 7.9% YoY was primarily driven by solid growth of 21.6% YoY in the ceramics & plastics segment coupled with robust EBIT margins of 17.0% (17.1% in Q1FY19). This segment contributed 33.4% to topline. Abrasives segment grew 6.6% YoY, contributing 59.3% to the overall topline. However, EBIT margins contracted 120 bps to 13.3% in the quarter. GNL witnessed higher input prices. The company imports over 50% of its raw material, majority of which comes from China and Europe. For FY2021E, the management intends to manage its operating margins via...

Stable FY19 despite higher input and energy costs For FY19, Grindwell Norton (GNL) reported stable growth of 11.7% YoY in topline, led by healthy growth in ceramics, abrasives and plastics segment. The same grew 29.3% YoY, 9.2% YoY and 14.5% YoY, respectively. Plastics segment grew tepid this year, due to slower offtake in auto segment (~30% sales come from this segment). EBIT margin for abrasives, C&P; segment and others segment were at 13.8%, 15.2% and 23.5%, respectively. For FY19, GNL witnessed higher input prices, energy costs and foreign exchange...

Grindwell Norton (GNL) reported weak Q3FY19 numbers, which were below our estimates. Revenues came in at | 394.8 crore, up 8% YoY, below our estimate of | 415 crore. Abrasives, ceramics and new initiatives' segment contributed ~59%, ~33% and ~8%, respectively EBITDA margins came in at 16.2% vs. 17.6% YoY. This was primarily due to a decline in gross margins by 200 bps YoY. Power & fuel expenses also increased 16.1% YoY. However, the same was partly offset by lower employee & other expenses, up 4.7% YoY and 5.4%...

Grindwell Q2 Performance In-Line With Estimates: Grindwell Norton revenue grew by 21% YoY basis to Rs. 4.2 bn on the back of double digit growth across all segments and earnings grew by 13% YoY basis to Rs. 3.67 in Q2, which is in-line with our estimates.

Revenues came in at | 416.8 crore, up 21% YoY, below our estimates of | 395.5 crore. Abrasives, ceramics and new initiatives' segment contributed 62%, 31% and 8.5%, respectively Increased contribution from higher margin segments like ceramics and new initiatives' segment led to a strong operational performance with GNL reporting 17% EBITDA margins (vs. 16.8% in Q2FY18) for the quarter. Gross margins fell 290 bps due to cost pressure in abrasives segment of the business. Employee expenses rose only...

Growth and Profitability Improve in Q1: Grindwell Norton (Grindwell) revenue grew by 13% to Rs. 3.8 bn on the back of strong growth on account of several new initiatives and ceramics segment (~ 12%), while abrasives segment de-grew by 5% in Q1.

ICICI Securities Ltd | Retail Equity Research Grindwell Norton (GNL) reported strong Q1FY19 numbers, which were above our estimates on the operational front Revenues came in at | 381.1 crore, up 12.9% YoY, slightly below our estimates of | 387.3 crore. Abrasives, ceramics and new initiatives' segment contributed 60%, 12.5% and 29.4%, respectively Increased contribution from higher margin segments like ceramics and new initiatives' segment led to a strong operational performance...

Robust Performance in Q4FY18 : Grindwell Norton (GWN) revenue grew by 18% to Rs. 3.8 bn on the back of stronggrowth on account of several new initiatives in the Ceramics & Plastics (C&P) division, while Abrasives segment growth was flat in Q4FY18. Earnings for the quarter grew by 30% YoY to Rs. 0.44 bn largely on account of product mix.

Revenues came in strong at | 383.5 crore, up 17.5% YoY, above our estimate of | 374.8 crore. This was on account of the better performance in ceramics and new initiatives' segment. These segments grew 16.8% and 42.1%, respectively. New initiatives segment contributed 9.3% to the topline EBITDA margins came in at 18.9% vs. 16.2% in Q4FY17 (our estimate: 15.9%). This was due to improving utilisation in all three segments. Gross margins dropped 240 bps YoY. However, employee...

Revenue grew by 16% on the back of strong growth in Ceramics and Plastics division (+24%) and earnings grew even faster at 45% in Q2FY18, due to margin improvement across segments in Q3FY17. We believe earnings to expand by20% CARG in next two years on the account revival in economic activity and GDP growth crossing 7.5% in FY19-FY20, market share gain from unorganised market for consumables and strong traction for new product lines in market.