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1. Stock market outlook

The current market price of the share is Rs 103 each. The stock’s 52-week high and 52-week low were Rs 154 each and 98.75 each. The stock generated a negative return of 18% in 1 year. Brokerage firm Geojit believes that the company will continue its growth momentum.

Current market price 103 rupees
Target price 122 rupees
Potential gain 18%
52 week high 154 rupees
52 week low 98
1 year back -18%
2. Topline driven by strong growth momentum to

2. Topline driven by strong growth momentum to

Revenue grew by 37.6% YoY to reach Rs. 340cr in Q4FY22 helped by strong growth momentum in order. Orders increased by 46% YoY to reach INR 5,040 million in Q4FY22. EBITDA increased by 448.6% YoY to reach Rs. 17cr in Q4FY22. The company was able to resolve issues with customers due to sight availability or liquidity issues, which helped maximize revenue. Gross margin for the quarter was around 29.2%, down (-6.4%) points from last year.

EBITDA margin was 5% (+700 bps year-over-year) as the business was able to partially pass on the impact of commodity inflation to customers. Actions on overall structural costs also contributed to mitigating the impact. Adj. PAT increased by 125.3% YoY to Rs. 2.7cr.

3. Roadmap ahead

3. Roadmap ahead

The economy is currently inflationary which is the result of strong demand which has returned post COVID also due to the war in Ukraine, raw materials are at an all time high and there are severe shortages in the market . The company will likely see some turbulence in the future.

Considering the various announcements by the Government of India on modernizing grade, improving digitalization in utilities, there is a solid growth track when it comes to both power generation and distribution.

4. Valuation

With robust revenue growth and strong growth momentum across all segments, we expect the business to continue to grow. Raw material inflation may remain a concern, but the company has been able to mitigate the impact through price increases and cost optimization actions.

We expect earnings to grow at a healthy CAGR of 34% in FY22-24E. We assign a buy rating with a target price of Rs 122 based on 34.5x FY24E EV/EBITDA.

5. About Schneider Electric Infrastructure Ltd

5. About Schneider Electric Infrastructure Ltd

Schneider Electric Infrastructure Limited (SEIL) was incorporated in 2011. SEIL is engaged in the manufacture, design, construction and maintenance of technologically advanced products and systems for the power grid. The current market capitalization is Rs 2466 crore.

Disclaimer

Disclaimer

The security was selected in the brokerage report of Geojit Financial Services Limited. Greynium Information Technologies, the author, and the brokerage are not responsible for any losses caused as a result of decisions based on the article. Goodreturns.in advises users to check with certified experts before making any investment decision.

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