Research Report

Entry into high growth phase – Maintain BUY

During FY18, Sandhar Technologies (Sandhar) sales grew by 20.8% to Rs19.5bn (our estimates of Rs19.4bn), driven by strong volume growth across all its business segments. Its EBITDA margins expanded by 160ps to 10.7% (in line with our estimates). PAT increased by 55.8% YoY to Rs662mn (our estimates of Rs 685mn). We largely maintain our Sales and PAT estimates for FY19 and FY20 and reiterate Our BUY rating on the stock with price target of Rs472 (PER of 18xFY20E earnings).