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Entry Price

95.00

Target

75.00

Recommend Date

21-02-2018

Return

21.05 %

Date : 21-02-2018

 Pitti Laminations (Pitti) reported a steady Q3FY18 performance, with net sales for the quarter at | 77.3 crore, up 0.5% YoY. Recovery in sales was stalled this quarter (vs. H1FY18, up 41% YoY) due to loss of production days (30) on account of shifting of manufacturing base from Hyderabad, Pune to its new facility in Aurangabad, Maharashtra  EBITDA in Q3FY18 was at | 11.2 crore with corresponding EBITDA margins at 14.5% and PAT at | 2.7 crore vs. | 1.9 crore in Q3FY17  PAT for the quarter was also supported by tax write back (| 0.4 crore)  Laminations sales volume for the quarter were at 3998 tonne (down 20% YoY), which comprises domestic sales volume of 3198 tonne and export sales volume of 800 tonne  The management has guided for ~18,000 tonne of lamination sales volume for FY18E with corresponding sales at ~| 360 crore  The company is confident of achieving 25% sales and commensurate PAT growth in FY18E-20E but operates an inefficient business model thereby realising dismal return ratios