For 2Q FY 2012, we expect Simplex Infra to report flat top line of Rs.1,051 cr. This
subdued performance would mainly be on account of slowdown faced by the
company on the international front.
We expect the Simplex Infra’s EBITDA margin to remain stable at 10.1%, in-line with management's guidance.
However, the bottom line is expected to be under pressure due to in creased interest cost (yoy expected
jump of 73.3%), resulting in a yoy decline of around 64.4% to Rs.9.6 cr for the
quarter.
We maintain our Buy rating on the stock with a target price of Rs. 299.
Review by Angel Broking
subdued performance would mainly be on account of slowdown faced by the
company on the international front.
We expect the Simplex Infra’s EBITDA margin to remain stable at 10.1%, in-line with management's guidance.
However, the bottom line is expected to be under pressure due to in creased interest cost (yoy expected
jump of 73.3%), resulting in a yoy decline of around 64.4% to Rs.9.6 cr for the
quarter.
We maintain our Buy rating on the stock with a target price of Rs. 299.
Review by Angel Broking
