With Goa carbon up 487%, it may be time to book profits: Analysts

Goa Carbon's stellar results and the sharp rise in share price could be a signal for investors to book partial profits though the firm's management is promising an even better second half performance.

Analysts said that the stock looks expensive both on an EVEBITDA and PE basis and that investors can book partial profits. "The stock has rallied sharply over the last few months on expectation of a better numbers and it is a right time to take partial profits," said G Chokkalingam, founder & CEO of Equinomics Research & Advisory.

But the firm's management told a television channel that its second half performance will be even better than the first half. Chair man Shrinivas Dempo said that revenue may touch Rs 500 crore in second half of FY18.

Goa Carbon, producer of calcined petroleum coke reported stellar results for the quarter ended September 2017 with earnings growing 67 per cent over the same quarter previous year and net profits growth of 193 per cent.

According to company management its capacity utilisation is at 100 per cent, which is a life time high, but analysts suggest to book partial profits as stock currently trading at an expensive valuations.

For the September quarter, Goa reported revenue of Rs 151 crore com ported revenue of Rs 151 crore compared to Rs 90 crore reported for the September 2016 quarter. Net profit rose to Rs 13.8 crore versus Rs 4.7 crore while EBITDA climbed to Rs 25.1 crore from Rs 6.4 crore.

The Goa Carbon stock, which gained 3 per cent on Wednesday, rallied 487 per cent since beginning of the year and is now trading at 26 times its trailing 12 months earnings.