Indo Count Industries: PAT growth of 35% & revenue growth of 12% for 9M-24 at a PE of 20
ICIL is on track to deliver on its FY24 guidance of 20-34% volume growth with 16-18% EBITDA. ICIL is guiding to double its revenue in the next 3-4 years, implying revenue CAGR of 19-26%
1. The Largest Global Home Textile Bed Linen Company
indocount.com | NSE: ICIL
Comprehensive product portfolio in the premium segment that comprises of bed sheets, fashion bedding, utility bedding and institutional bedding
Indo Count is recognized among the top three Global bed sheet suppliers in the US
Going forward the company is focused on expanding in value added segments such as Fashion Bedding, Utility Bedding and Institutional Bedding
2. FY19-23: PAT CAGR of 47% & Revenue CAGR of 12%
3. Weak FY23: PAT down 23% & Revenue up 4%
4. Strong H1-24: PAT up 30% & Revenue up 13% YoY
5. Strong Q3-24: PAT up 53% & Revenue up 10% YoY
6. Strong 9M-24: PAT up 35% & Revenue up 12% YoY
7. Business metrics: Strong and improving return ratios
8. Strong outlook: 20-34% volume growth in FY24
i. FY24: 20-34% volume growth
Revised FY24 Volume Guidance stands at 90 - 100 Mn. Mtrs.
Margin Guidance of 16%-18%
we should be able to achieve midpoint of our guidance very well because of the order book positions which we have and so far which we have shipped out stands on as on date.
ii. Outlook of revenue CAGR of 19-26%
ICIL is guiding to doubling its revenue in 3-4 years implying revenue CAGR of 19-26%
we would like to double our revenue in the next 3-4 years.
9. PAT growth of 35% & Revenue growth of 12% in 9M-24 at a PE of 20
10. So Wait and Watch
If I hold the stock then one may continue holding on to ICIL
Based on 9M-24 performance, ICIL looks on track to deliver the strongest revenue & PAT in FY24
One can look forward to a strong Q4-24 given the confidence of the ICIL management to deliver on its FY24 guidance of growth and EBITDA margin.
We anticipate good performance in Q4, thereby affirming our volume guidance for FY24 intact
The outlook for ICIL looks strong given the outlook to double revenue in 3-4 years. One can wait for the FY25 guidance after Q4-24
we should be having more visibility in March so we will be able to give you better numbers for FY2025 in our fourth quarter call.
11. Join the ride
If I am looking to enter ICIL then
ICIL has delivered PAT growth of 35% and revenue growth of 12% in 9M-24 at a PE of 20 which makes the valuations fairly valued in the short term.
With a longer term revenue CAGR of 19-26% to double its revenue in 3-4 years at a PE of 20 makes the valuations reasonably valued over the longer term.
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