Fwd: Deepak Fertilisers Q2FY12 Result Update; Fertiliser surprises positively, upgrade earnings; Buy; Target: Rs 250

0 views
Skip to first unread message

Deepak Vaishnav

unread,
Oct 29, 2011, 3:20:57 AM10/29/11
to

 

Deepak Fertilisers

Fertiliser surprises positively, upgrade earnings  

 

BUY

 

CMP: Rs 166                                       Target Price: Rs 250

n     Q2FY12 results were in line with estimates. Revenues Rs 5.8 bn, +39%yoy, was above est due to strong fertiliser revenues but APAT Rs 619 mn, +38%yoy, was broadly in line with est

n     TAN demand remained sluggish due to Telangana stir & monsoon related floods. Margin pressures also intensified as company was unable to push cost related increases

n     Strong results in fertiliser were driven by higher trading of specialty fertiliser resulting in fertiliser contribution to EBIT in H1FY12 increasing to 25% from 18% previous year 

n     Driven by strong performance of fertiliser, we raised our EPS to Rs 26.7/30.6 (previous Rs 25.2/27.9) for FY12/13, maintain target of Rs 250 and reiterate BUY

 

Regards,

Rohan Gupta

Research Analyst | Emkay Global Financial Services Ltd. | www.emkayglobal.com | Email : rohan...@emkayglobal.com 

Board No. : +91-22-66121212 | Extn. : 248 | DID : 66121248 | Mob : +919619321479 |

 

 


image002.gif
Deepak Fertilisers Q2FY12 Result Update.pdf
Reply all
Reply to author
Forward
0 new messages