Grindwell Norton Ltd. share price target

ICICI Securities Ltd | Retail Equity Research Grindwell Norton (GNL) reported strong Q2FY18 numbers, which were above our estimates. This was mostly on account of higher growth of 14.9% YoY in the ceramics segment (our estimate 12% YoY) coupled with strong EBIT margins of 13.8% (9% in Q2FY17). The abrasives segment contributed 62% of topline while the ceramics segment contributed ~30% to the topline Revenues came in at | 344.4 crore up 10.6% YoY, above our...

Revenues Grew; Cost Pressure Impacted Margin Expansion in Q1FY18: Revenue (net) grew by 8.6% and 9.1% on YoY basis at consolidated and standalone level respectively during Q1FY18.Abrasives segment posted YoY growth of 2.6% in Q1FY18 while the same for Ceramics & plastics came in at 18.0%. Weakness in Ceramics & Plastics segment at subsidiaries level contracted YoY revenue growth to the extent of 13.1% compared to same period last year.

ICICI Securities Ltd | Retail Equity Research Grindwell Norton's (GNL) reported Q1FY18 results, which were below our estimates. This was mostly on account of weak growth of 2.6% YoY in the abrasives segment (our estimate 10% YoY). The abrasives segment contributed ~64% of topline, while the Ceramics & Plastics segment contributed ~28% to the topline. Revenues came in at | 337.7 crore up 8.5% YoY, marginally below our estimates of | 343.1 crore. Abrasives segment grew 2.6% YoY, |...

ICICI Securities Ltd | Retail Equity Research Grindwell Norton (GNL) reported Q4FY17 numbers, which were below our estimates. The abrasives' segment contributed ~67% of...

ICICI Securities Ltd | Retail Equity Research Grindwell Norton's (GNL) Q3FY17 numbers were above our estimates. Revenues came in at | 314.4 crore (adjusted for Ind-As), up 12% YoY, and above our estimates of | 301.4 crore Abrasives segment comprised ~65% of the topline while the ceramics & plastics segment contributed 25% to the topline. Abrasives segment grew 16.9% YoY, | 218.6 crore in Q3FY17 vs. | 186.7 crore in Q3FY16. Ceramics & plastics segment grew 17.9%...

ICICI Securities Ltd | Retail Equity Research Grindwell Norton's Q2FY17 numbers were broadly in line with our estimates. Revenues came in at | 311.2 crore (adjusted for Ind-AS) up 9.5% YoY, and in line with our estimate of | 311.1 crore Abrasives segment grew 11.8% YoY to | 219.9 crore in Q2FY17 vs. | 196.6 crore in Q1FY16 (our estimate 9% YoY growth). Non abrasives segment grew 12.5% YoY, | 115.3 crore in Q2FY17 vs. | 102.4 crore in Q1FY16 (our estimate: 13% YoY growth). Abrasives...

Abrasives segment grew 11.5% YoY, | 222.85 crore in Q1FY17 vs. | 199.75 crore in Q1FY16 (our estimate: 11% YoY growth). Nonabrasives segment grew 2.5% YoY, | 113 crore in Q1FY17 vs. | 110 crore in Q1FY16 (our estimate 5% YoY growth). Abrasives' segment contributed ~66.5% of topline, while the Ceramics & Plastics' segment contributed 25.5% to the topline Absolute EBITDA came in at | 50.4 crore vs. our estimate of | 51 crore. EBITDA margins came in at 16.2% vs. 15.5% in Q1FY16 (Idirect estimate: 15.5%) on account of lower power and other expenditure costs during Q1FY17...

ICICI Securities Ltd | Retail Equity Research For Q4FY16, Grindwell Norton's (GNL) revenues came in at | 323 crore, up 8.8% YoY, and below our estimate of ~| 347.6 crore. This...

Karvy initiates coverage on Grindwell Norton Ltd (GWN) with a Buy Rating. GWN to benefit from up-tick in industrial and investment activity. Revenues could grow by 11% CAGR during FY15-17E with abrasives division growing at a CAGR of 9.4% and ceramics division growing at a CAGR of 8.2% during the same period. GWN has made prudent investments in capacities with blended utilisation levels currently averaging below 60% could benefit from operating leverage during FY15-17E with asset turnover improving over 1.2x by FY17E. GWN has enviable parental backing from Saint Gobain with access to cutting edge product and process technologies apart from access to multiple markets for export of products. We initiate a coverage on GWN with a BUY rating for a target price of Rs. 890 at 31x FY17E EPS which is 2 standard deviation of one year forward mean PE during FY05-15 representing an upside potential of 17% for a 9-12 months period.