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Simplex Infrastructures

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.
Simplex Infrastructures Simplex Infrastructures Reviewed by Rajesh Narayanan on 3:11:00 AM Rating: 5
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