Bangalore-based Opto Circuits India Ltd (OCIL), a manufacturer of medical diagnostics and interventional products, reported Revenue was up 77% YoY to Rs 2.1 bn on the back of Criticare integration, and excluding Criticare the revenue growth could be ~34%. The EBITDA margins improved 520 bps to 34.4% and net profit surged 62% to Rs 554 mn. However, the PAT margins declined 240 bps to 26%.
The rise in profits was boosted by a good demand for its products in the regulated markets of Europe and the US. The outbreak of swine flu, in particular, generated a huge demand for Opto’s products. The company got good orders for its thermometers in most of the markets across the world, including the domestic market.
For the year ended March 31, 2009, the company reported a rise of 60.3 per cent to Rs 209.4 crore, as compared with the previous year. Its total income for the year rose by 74.8 per cent to Rs 818.5 crore. Operational profit for the full year went up by 87.4 per cent to Rs 245.3 crore.
Opto has always positioned itself in a niche segment. On the back of strong product pipeline and plans to enter newer markets, we expect the company to maintain its growth momentum in FY10 and FY11, respectively. Though the stock price has seen a considerable run up from levels of Rs 80 in the past few months, the stock is still available at attractive valuations. At the current market price of Rs 150, the stock is trading at 10x FY10E and 8x FY11E
The rise in profits was boosted by a good demand for its products in the regulated markets of Europe and the US. The outbreak of swine flu, in particular, generated a huge demand for Opto’s products. The company got good orders for its thermometers in most of the markets across the world, including the domestic market.
For the year ended March 31, 2009, the company reported a rise of 60.3 per cent to Rs 209.4 crore, as compared with the previous year. Its total income for the year rose by 74.8 per cent to Rs 818.5 crore. Operational profit for the full year went up by 87.4 per cent to Rs 245.3 crore.
Opto has always positioned itself in a niche segment. On the back of strong product pipeline and plans to enter newer markets, we expect the company to maintain its growth momentum in FY10 and FY11, respectively. Though the stock price has seen a considerable run up from levels of Rs 80 in the past few months, the stock is still available at attractive valuations. At the current market price of Rs 150, the stock is trading at 10x FY10E and 8x FY11E
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