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Entry Price

900.00

Target

1,060.00

Recommend Date

09-02-2021

Return

17.78 %
BUY

Date : 09-02-2021

Shaily reported a fairly strong performance in Q2FY21 & Q3FY21, helping cover up its revenue losses occurred due to pandemic related lockdowns in Q1FY21. Further, the company has guided strong order pipeline that provides revenue visibility for the next two years. With better operating leverage and a complete pass on mechanism of inflationary pressure to its clients (with a lag of three months), we believe EBITDA margin may improve ~100 bps in FY20-23E. Better cash flows, going forward, will be utilised to fund the future capex and reduce debt (H2FY21 debt at ~| 134 crore). That would result in a robust PAT CAGR of ~34% in FY20-23E.