Fwd: GIPCL Q2FY12 Result Update; In line; Upside once new plant operates without problems; Buy; Target: Rs115

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Deepak Vaishnav

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Oct 29, 2011, 3:18:27 AM10/29/11
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GIPCL

In line; Upside once new plant operates without problems

 

BUY

 

CMP: Rs77                                        Target Price: Rs115

n     2Q12 PAT of Rs277mn (growth of 326% yoy, adjustment of Rs90mn of tax refund in Q2FY11), marginally above estimates mainly helped by negative tax. Other numbers in line.

n     Lower PAF at Surat-II (61% vs. 78% in 1Q12) impacted qoq performance - PAT decline of 35%. We estimate the impact of Surat II at Rs150mn (under-recovery) vs. 1Q12   

n     Surat II PAF got impacted due to (1) 6 days forced shut down of one unit (to start by October end – impacting 3Q as well) and (2) lower extraction of lignite due to monsoons.

n     We have been conservative in our estimates and maintain FY12E/FY13E EPS of Rs9.9 and Rs10.7/share. Stock trading at 0.8x FY12E book with dividend yield of 4.5% in FY12E. Maintain Buy but upside only once new plant runs hassle free

 

Regards,

Amit Golchha

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

Board No. : +91-22-66121212 | Extn. : 408 | DID : 66242408 | Mob : +919833357365 |

 

 


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GIPCL Q2FY12 Result Update.pdf
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