Fwd: Chambal Fertilisers Q2FY12 Result Update; Withdrawal of shipping business demerger - Negative; Accumulate; Target: Rs98

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Deepak Vaishnav

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Oct 22, 2011, 4:08:18 AM10/22/11
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Chambal Fertilisers

Withdrawal of shipping business demerger - Negative

 

ACCUMULATE

 

CMP: Rs87                                        Target Price: Rs98

n     Chambal’s Q2FY12 results were broadly in line with APAT of 841 mn, (-14%yoy) despite disappointment in shipping (EBIT loss of Rs 49 mn) and textiles (loss of Rs 90 mn)

n     Manufactured fertiliser and trading business posted encouraging results with EBIT margins of 16.8% and 6% respectively and expected to remain robust 

n     Withdrawal of proposed demerger of shipping is the biggest disappointment and is expected to put pressure on company’s earnings due to adverse business environment

n     Revise est to Rs 9.0/8.9 (from Rs 8.7/9.2) for FY12/FY13 resp. Trim target multiple and reduce target price to Rs 98 (from Rs 110) with downgrade to Accumulate (from 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 |

 

 


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Chambal Fertilisers Q2FY12 Result Update.pdf
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