Sign up for Equitymaster's free daily newsletter, The 5 Minute WrapUp and get access to our latest Multibagger guide (2017 Edition) on picking money-making stocks.

This is an entirely free service. No payments are to be made.

Download Now Subscribe to our free daily e-letter, The 5 Minute WrapUp and get this complimentary report.
We hate spam as much as you do. Check out our Privacy Policy and Terms Of Use.
Snowcem: Net profit up 35% - Views on News from Equitymaster
  • E-MAIL
  • A  A  A
  • Feb 1, 2001

    Snowcem: Net profit up 35%

    Snowcem India, the market leader in the exterior paint segment, has declared a 24% rise in sales for the the 3rd quarter ended 31st December 2000 to Rs 556 m. Net profit has gone up by 36% to Rs 70 m in the same period.

    (Rs m) 3QFY00 3QFY01 Change
    Sales 447 556 24.3%
    Other Income 1 1 58.9%
    Expenditure 378 465 23.2%
    Operating Profit (EBDIT) 69 90 30.5%
    Operating Profit Margin (%) 15.4% 16.2%  
    Interest 13 16 19.6%
    Depreciation 5 5 12.5%
    Profit before Tax 52 70 35.3%
    Tax - -  
    Profit after Tax/(Loss) 52 70 35.3%
    Net profit margin (%) 11.6% 12.6%  
    No. of Shares (eoy) (m) 10.5 10.5  
    Diluted number of shares 10.5 10.5  
    Earnings per share* 19.7 26.7  

    Operating profit has moved up by 31% to Rs 90 m backed by a significant increase operating margins from 15 in 3QFY00 to 16% in 3QFY01. This on the back of rising raw material prices and competitive scenario of the Indian paints sector is encouraging. However, margins for the first nine months of the current has dropped marginally by 10 basis points to 17%. To further boost sales, the company has launched new exterior paints, which include Snowcem Plus (premium water proof cement paint), Sandtex Matt (Premium textured exterior finish), and Snowplast (Acrylic finishing plaster for interiors).

    However, the company has planned to venture into gold related business, which has raised apprehensions about the focus of the company.

    The stock is trading at Rs 59 at a P/E multiple of 2.9x the annualised nine months earnings. On the annualised sales of Rs 1,681 m, market capitalisation to sales works out to 0.3 times (market capitalisation is Rs 637 m).



    Equitymaster requests your view! Post a comment on "Snowcem: Net profit up 35%". Click here!


    More Views on News

    Asian Paints: Destocking Ahead of GST Impair Sales Volumes (Quarterly Results Update - Detailed)

    Aug 17, 2017

    Asian Paints registers 20.1% YoY decline in profits during 1QFY18 with low single-digit volume growth in the decorative paints segment.

    Asian Paints: Good Performance Across Segments (Quarterly Results Update - Detailed)

    May 18, 2017

    Asian Paints registers 10.4% YoY growth in profits during 4QFY17 with double-digit volume growth in the decorative segment.

    More Views on News

    Most Popular

    This Small Cap Can Drive Chinese Players Out of India (and Make a Fortune in the Process)(The 5 Minute Wrapup)

    Aug 17, 2017

    A small-cap Indian company with high-return potential and blue-chip-like stability is set to supplant the Chinese players in this niche segment.

    The Most Important Innovation in Finance Since Gold Coins(Vivek Kaul's Diary)

    Aug 10, 2017

    Bill connects the dots...between money and growth, real money and real resources, gold and cryptocurrencies...and between gold, cryptocurrencies, and time.

    Signs of Life in the India VIX(Daily Profit Hunter)

    Aug 12, 2017

    The India VIX is up 36% in the last week. Fear has gone up but is still low by historical standards.

    Bitcoin Continues Stellar Rise(Chart Of The Day)

    Aug 10, 2017

    Bitcoin hits an all-time high, is there more upside left?

    5 Steps To Become Financially Independent(Outside View)

    Aug 16, 2017

    Ensure your financial Independence, and pledge to start the journey towards financial freedom today!

    Copyright © Equitymaster Agora Research Private Limited. All rights reserved.
    Any act of copying, reproducing or distributing this newsletter whether wholly or in part, for any purpose without the permission of Equitymaster is strictly prohibited and shall be deemed to be copyright infringement.

    LEGAL DISCLAIMER: Equitymaster Agora Research Private Limited (hereinafter referred as 'Equitymaster') is an independent equity research Company. Equitymaster is not an Investment Adviser. Information herein should be regarded as a resource only and should be used at one's own risk. This is not an offer to sell or solicitation to buy any securities and Equitymaster will not be liable for any losses incurred or investment(s) made or decisions taken/or not taken based on the information provided herein. Information contained herein does not constitute investment advice or a personal recommendation or take into account the particular investment objectives, financial situations, or needs of individual subscribers. Before acting on any recommendation, subscribers should consider whether it is suitable for their particular circumstances and, if necessary, seek an independent professional advice. This is not directed for access or use by anyone in a country, especially, USA or Canada, where such use or access is unlawful or which may subject Equitymaster or its affiliates to any registration or licensing requirement. All content and information is provided on an 'As Is' basis by Equitymaster. Information herein is believed to be reliable but Equitymaster does not warrant its completeness or accuracy and expressly disclaims all warranties and conditions of any kind, whether express or implied. Equitymaster may hold shares in the company/ies discussed herein. As a condition to accessing Equitymaster content and website, you agree to our Terms and Conditions of Use, available here. The performance data quoted represents past performance and does not guarantee future results.

    SEBI (Research Analysts) Regulations 2014, Registration No. INH000000537.

    Equitymaster Agora Research Private Limited. 103, Regent Chambers, Above Status Restaurant, Nariman Point, Mumbai - 400 021. India.
    Telephone: +91-22-61434055. Fax: +91-22-22028550. Email: info@equitymaster.com. Website: www.equitymaster.com. CIN:U74999MH2007PTC175407

    Become A Smarter Investor In
    Just 5 Minutes

    Multibagger Stocks Guide 2017
    Get our special report, Multibagger Stocks Guide (2017 Edition) Now!
    We will never sell or rent your email id.
    Please read our Terms


    • Track your investment in SIL BUSINESS with Equitymaster's Portfolio Tracker. Set live price alerts, get research alerts and more. Get access now...
    • Add To MyStocks