Arihant Capital's research report on Arihant Superstructures
Arihant Superstructures Ltd reported numbers, FY22 revenue stood at INR 331cr (+22.5% YoY) vs INR 270cr. EBITDA stood at INR 70cr (+45.1% YoY), EBITDA Margin expanded to 328bps to 21.1% vs 17.8% in FY21. The EBITDA Margin improvement mainly due to lower raw material cost in terms of sales. In FY22, raw material cost in terms of sales stood at 59.5% vs 67.6% in FY21. The company has taken appropriate price hike measures against raw material cost inflation that leads to better margins. PAT stood at INR 41cr (+162.9% YoY). PAT Margin expanded by 668bps to 12.5% vs 5.8% in FY21. The company has sold 1,628 units (+91% YoY) which is around 13.8 lakh sq.ft (+59% YoY) and achieved sales bookings of INR 764cr (74% YoY). The average realization improved to approx. INR 5,536 per sqft (+20.3% YoY). The collections stood at INR 416.3cr (+45% YoY).
Outlook
We have a BUY rating at a Target Price of INR 261 per share based on DCF; an upside of 82.8%.
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