Grindwell Norton soars 14% on 1:1 bonus issue

Grindwell Norton, a subsidiary of Compagnie de Saint-Gobain has reported 12.2 per cent growth in consolidated net profit at Rs 30.57 crore for the quarter ended March 31, 2016 as against Rs 27.25 crore in the corresponding quarter of the previous year.

The company’s consolidated revenue has grown by 8.76 per cent at Rs 323.04 crore in Q4FY16. Its consolidated operating profit (EBITDA) has grown by 10.16 per cent at Rs 53.14 crore along with operating profit margin expanding by 21 bps for the current quarter, i.e. at 16.45 per cent.

For the entire period of FY16, it has reported consolidated net profit flat at Rs 104.61 crore, while its revenue has grown by 4.17 per cent at Rs 1,135.4 crore. Its consolidated operating profit (EBITDA) has been reported flat at Rs 182 crore along with operating profit margin contracting by 52 bps for the current year at 15.39 per cent.

The company’s board recommended bonus equity shares in the ratio of 1:1, i.e. one equity share of Rs 5 each for every equity share of Rs 5 each held by the shareholders. The company has concluded that interim dividend of Rs 6.50 per equity share be confirmed as a final dividend.

Grindwell Norton is India’s leading manufacturer of Abrasives (Bonded, Coated, Non-Woven, Superabrasives and Thin Wheels) and Silicon Carbide. It also manufactures and markets High Performance Refractories and Performance Plastics products.

On the valuation front, it is currently trading at 36 times, price to earnings (P/E) ratio per share of Rs 18.90 as on March 31, 2016. Today stock price closed up by Rs 48.30 or 7.64 per cent at Rs 680.65 per share.