Angel Broking has maintained `Buy` on INEOS ABS with a price target of Rs 733 in its report dated Feb. 16, 2012. The broking house gave the following rationale:
INEOS ABS reported its 4QCY11 numbers. Top line for the quarter was flat at Rs 2.11 billion yoy. Annual sales stood at Rs 8.26 billion, 7.7% lower than our estimates of Rs 8.96 billion.
Operating margin for the quarter fell by 980 bps yoy from 16.4% to 6.4% mainly due to substantial increase in the raw material cost as percent of sales. Net profit stood at Rs 95 million, 56% lower yoy. Annual net profit came in at Rs 540 million, 22% lower than our estimates of Rs 690 million. As we roll over to CY2013E, we continue to maintain our Buy recommendation on the stock with the revised target price of Rs 733, based on PE of 15x for CY2013E.
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