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SMR
08-18-2015, 06:36 AM
Simplex Infrastructures Limited is an India-based diversified company executing projects in several sectors, such as transport, energy and power, mining, buildings, marine, real estate. The Company’s segments include Construction business and Others, which include income from oil drilling services, wind mill, real estate and hire of plant and equipment including oil drilling rig. The Company’s Ground Engineering includes spans pre-cast piling and jointed piling; cast in-situ, driven and bored piling. Other ground engineering tasks include soil investigation, soil compaction, diaphragm walls, grouting and stone columns. Simplex's marine projects include a variety of structures like undersea piling, including steel piling under adverse sea conditions, apart from design and construction of on-shore and off-shore structures like ports, wharfs, harbors, jetties and berths. It is also engaged in constructing thermal, hydel and nuclear power plants.

Official Website: www.simplexinfra.com

SMR
08-18-2015, 06:37 AM
Simplex Infrastructures (Simplex) reported a good set of numbers for 1QFY2016. On the top-line (standalone) front, it reported a 12.3% yoy growth to Rs1,505cr. On a sequential basis, the top-line was down 1.8%. On the EBITDA margin front, Simplex impressed us by reporting 18bp yoy expansion to 9.7%. Surge in yoy EBITDA margin is mainly on account of decline in other expenses. Stronger execution and improved operating performance helped Simplex report a strong 41.0% yoy increase in reported PAT to Rs18cr. Simplex’s order book as of 1QFY2016 stands at ~Rs15,139cr, which gives revenue visibility for over the next 8-10 quarters. Outlook and valuation: At the current market price of Rs326, the standalone EPC business is trading at FY2016E and FY2017E P/E multiple of 15.9x and 9.1x, respectively. Considering (1) 12.1% top-line and 68.5% bottom-line CAGR during FY2015-17E, (2) strong order book of ~Rs15,139cr, which gives revenue visibility for over the next 8-10 quarters, (3) scope for improvement in the WC as % of sales ratio from 64% in FY2015 to 51% in FY2017E, which should lead to improvement in D/E ratio from 2.2x in FY2015 to 1.7x in FY2017E, we have assigned 1-year forward P/E multiple of 12.0x to our FY2017E EPS estimates of Rs36/share, resulting in value of Rs430/share. Given the 31.9% upside potential the stock has from the current levels, we maintain our BUY rating on the stock.

Source: http://www.angelbroking.com/