Sintex Ind soars nearly 50% post Q2 results

The counter has seen heavy trading activity with a combined around 18 million shares have changed hands on BSE and NSE till 1020 hours.

Sintex Industries has soared 13% to Rs 36.45, extending its past three days rally on BSE, after reporting a better-than-expected earnings for the quarter ended September 2013 (Q2). The stock has rallied nearly 47% from intra-day low of Rs 24.85 touched on October 15, before the announcement of Q2 results.

The counter has seen heavy trading activity with a combined 17.78 million shares changing hands till 1020 hours against an average sub 13 million shares that were traded daily in past two weeks on BSE and NSE.

The company has posted consolidated net profit of Rs 73 crore against an average analyst estimate of Rs 66 crore during the recently concluded quarter. The company had profit of Rs 72 crore in a year ago quarter.

Net sales however, grew 15% to Rs 1,365 crore in September quarter against Rs 1,186 crore in the corresponding quarter of previous fiscal. Analyst expected net sales of Rs 1,212 crore for the quarter.

The company said its EBITDA margins remain flat at around 16% during the quarter under review. However, textile division see rise EBITDA margin by 241bps, it added.

Meanwhile, Saumil Mehta, analyst, IDFC Securities, maintain the stock as outperformer with a revised target price of Rs 62 a share, valuing the company at five time FY15 estimated earnings.

"We believe a longer term re-rating would only happen on the easing of working capital cycle and improvement in earnings momentum at monolithic and custom moulding business abroad" the Business Standard report suggest quoting analyst.