Shaily Engineering Plastics - Robust Recovery, Order Book In Place: ICICI Direct
BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.
ICICI Direct Report
Shaily Engineering Plastics Ltd. reported a fairly strong performance in Q2 FY21 and Q3 FY21, helping cover up its revenue losses occurred due to pandemic related lockdowns in Q1 FY21.
Further, the company has guided a strong order pipeline that provides revenue visibility for the next two years.
With better operating leverage and a complete pass on the mechanism of inflationary pressure to its clients (with a lag of three months), we believe Ebitda margin may improve ~100 basis points in FY20-23E.
Better cash flows, going forward, will be utilised to fund the future capex and reduce debt (H2 FY21 debt at ~Rs 134 crore).
Click on the attachment to read the full report:
This report is authored by an external party. BloombergQuint does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BloombergQuint.
Users have no license to copy, modify, or distribute the content without permission of the Original Owner.