Arihant Capital has given Buy recommendation for Arihant Superstructures with a target price of Rs. 261 in its research report issued on May 10, 2022

Arihant Capital’s research report on Arihant Superstructures

Arihant Superstructures Ltd reported numbers, FY22 revenue stood at INR 331cr (+22.5% YoY) vs INR 270cr. EBITDA stood at INR 70cr (+45.1% YoY), EBITDA Margin expanded to 328bps to 21.1% vs 17.8% in FY21. The EBITDA Margin improvement mainly due to lower raw material cost in terms of sales. In FY22, raw material cost in terms of sales stood at 59.5% vs 67.6% in FY21. The company has taken appropriate price hike measures against raw material cost inflation that leads to better margins. PAT stood at INR 41cr (+162.9% YoY). PAT Margin expanded by 668bps to 12.5% vs 5.8% in FY21. The company has sold 1,628 units (+91% YoY) which is around 13.8 lakh sq.ft (+59% YoY) and achieved sales bookings of INR 764cr (74% YoY). The average realization improved to approx. INR 5,536 per sqft (+20.3% YoY). The collections stood at INR 416.3cr (+45% YoY).

Outlook

We have a BUY rating at a Target Price of INR 261 per share based on DCF; an upside of 82.8%.

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