Banco Products runs low after rollback of buyback

Banco Products’ board of directors have decided to drop the proposal of buyback of equity shares of the company and decided not to further proceed with the proposal. The share price of the company declined by 7.16 per cent on bourses in early trades; and is trading at Rs 185 on an intraday basis.

On the financial front, Banco Products’ revenue has increased by 8.91 per cent to Rs 358 crore in Q2FY17 as compared to same period in previous fiscal. The company’s operating profit also has risen by 25.12 per cent to Rs 52 crore in Q2FY17 on a yearly basis. Its net profit has increased by 28.28 per cent to Rs 31.98 crore in Q2FY17 as compared to same period in previous fiscal. Banco Products’ cash and cash equivalents stand at Rs 151 crore in Q2FY17 against Rs 109 crore Q2FY16.

Banco Products’ book value stands at Rs 96.09 and trailing twelve months (TTM) EPS at Rs 15.33. The company has given dividend yield of 2.49 per cent. Its share price is trading at PE multiple of 12.06x times as compared to industry PE multiple of 44.61x times.