Sintex Inds

Sintex saw some volatile action yesterday with surge in volumes and stock price going up over 6.5%. Punters taking position in the stock; maybe the perception is that with water scarcity all over the country, demand for its tanks could see a spike up this summer. This is in direct contrast to its revenue guidance given after its Q3FY16 performance. It revised its sales and profit forecast to 15%, down from 20% for FY-16 on account of substantial fall in the commodity prices. Seasonally, Q4 is its strongest quarter and the market probably expects to see it surpass its lowered estimates.

For Q3Fy16, the company posted a 11% (YoY) rise in consolidated net profit at Rs.180 crore on a 12% jump in net sales at Rs.2045 crore. The business material segment of the company grew at 21% and the textile segment of the company grew at 38%. The custom moulding segment saw a 1% drop in revenue. Its key businesses prefabricated building systems and domestic custom moulding segment, maintained higher momentum. Prefabs clocked higher sales, driven by CSR spending and clean India initiatives.