Fwd: GSFC Q2FY12 Result Update; Another robust quarter; Buy; Target: Rs 530

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Deepak Vaishnav

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Oct 29, 2011, 3:11:29 AM10/29/11
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GSFC

Another robust quarter

 

BUY

 

CMP: Rs427                                        Target Price: Rs530

n     GSFC continued strong show with Q2FY12 PAT at Rs 2.12 bn (+3% yoy on strong base) above our est driven by strong performance of fertiliser and chemicals

n     Fertiliser EBIT margins at 15% (est 11%) and chemical margins at 34.3% (est 35%), driven by higher spread in caprolactam, supported PAT growth despite lower revenues

n     Despite lower than est revenues, strong performance below the EBITDA line driven by lower than est interest, depreciation and higher other income boosted PAT

n     With 48% of cmp in cash and equivalents and FY12 EV/EBITDA of 2.0x, P/E of 5x, stock offers attractive investment opportunity. Re-iterate BUY with TP of Rs 530

 

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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GSFC Q2FY12 Result Update.pdf
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