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Date : July 23, 2012

 

Best Buy : PIRAMAL GLASS LTD



Price Info :-

CMP (Rs.)
Rs 99.00
52 Week High (Rs.)
Rs 156.00
52 Week Low (Rs.)
Rs 89.00
Market Cap (Rs In Cr)
805.00
Dividend (FY 11)
Rs.3.50
Face Value
Rs.10


 

About The Company:-


Piramal Glass is a global leader in delivering world-class packaging solutions for the perfumery and pharmaceuticals businesses. It offer an entire gamut of flacconage solutions under one umbrella, making us a one-stop-shop for all the needs of our customers. It end-to-end flacconage solutions include full bottle design capabilities, in-house mould design, CNC machines for mould manufacturing, high quality glass manufacturing and dedicated ancillaries for decoration and accessories like caps, cartons and brushes

 

 

FINANCIALS:

Piramal Glass, after adjusting for M-T-M forex losses of about Rs 133mn (60% of total forex loss in Q4FY12), PGL results were in line with our expectations on all counts. PGL reported revenue growth of 22.8% yoy to Rs 4.0bn led by strong growth of 31% in SF&B segment and 21% yoy growth in C&P segment. Pharma segment also witnessed growth of 11% yoy during the quarter.

 

 

 



Future Prospects:



Strong traction in Europe and USA along with market share gains led to healthy growth in premium C&P.
On the flipside, growth in the mass C&P segment was subdued at 2% yoy. The premium segment would continue to be the key growth driver for C&P segment, while the new Greenfield facility would support growth in mass C&P segment. This quarter saw SF&B segment outpacing C&P segment on growth terms, with SF&B segment posting 31% yoy growth to Rs 1.1bn, largely led by robust growth in domestic markets of USA and Sri Lanka. However, on the cost side, Sri Lanka operation was impacted by high energy prices. Contribution of SF&B to revenues improved to 27% in Q4FY12. For FY12, the contribution of SF&B to revenues stood at 25%. Forecasting strong growth in SF&B market, PGL is investing about Rs 200mn in upgrading its SF&B line and shifting the decoration facility near the furnace, to propel revenue growth in SF&B segment.

 

 

 

 

 

Recommendation:


WE RECOMMAND TO BUY STRONGLY ON THIS FRAME STOCK (CMP RS.99). Company is going to give dividend of Rs.3.50 .and the record date is fixed  2nd august 2012. Ex date fixed is  31st july 2012.





THANKS AND REGARDS.

MIDEAST TEAM.