Result Update: Simplex Infrastructures. • Simplex Infra reported 10% and 5% de-growth for Q4FY10 and full year FY10 revenues respectively as against same period last year. This was lower than market estimates as well as management's guidance of achieving a flat growth in FY10. • Operating margins were better than our estimates and stood at 10.2% and 9.8% for Q4FY10 and FY10 respectively, led by selective bidding by the company. • Net profits registered 82% growth for Q4FY10 but declined by 3% for the full year FY10. This was impacted by flattish revenue growth as well as higher tax outgo. • At current price of Rs 479, stock is trading at 14.2x and 11.7x P/E and 6.5x and 5.8x EV/EBITDA multiples for FY11 and FY12 estimates respectively. With expected increase in overall order inflows and increased traction from international order inflows, investors can accumulate the stock with a price target of Rs 474 on FY11 estimates.
Enlightening