Public Sector (PSU) fertiliser company Gujarat Narmada Valley Fertilisers Company (GNFC)’s latest Research Report by Emkay Broking is given below for serious investors, please have a look before invesring…….
Emkay Broking has maintained its “BUY” call on Gujarat Narmada Valley Fertilisers Company (GNFC) though its disappoint on dismal performance of chemical segment of the company. Emkay has reduced the Target price with maintainrd “BUY” call.
Current Market Price (CMP) is Rs 101.30
New Target set by Emkay Broking is Rs 135
Upside expected is 35%
A part of Emkay Broking Research Report is as follows :-
GNFC’s Q1FY12 results disappointed due to lower than expected EBITDA margins . Revenues of Rs 6.4bn, +75% yoy, were in line with our estimates. YoY results are not comparable due to Ammonia plant break down previous year. EBITDA of Rs 925mn (EBITDA loss of Rs 171mn) was lower than our estimates of Rs 1.4bn due to lower than expected margins in chemical segment. EBITDA margin of 14.4% was lower than our estimates of 22.3%. APAT of Rs 417mn was lower than our estimates of Rs 647mn.
We believe commissioning of WNA-II plant is likely to drive revenues growth in FY12E while commissioning of Ethyl Acetic and TDI plant will boost top line in FY13E. Chemical prices continue to be volatile and pose downward risks and hence we continue to base our target price on FY12E estimates. We reduce our FY12E/ FY13E estimates by 13.6% / 3.1% to Rs 19.3/Rs 25.7. Subsequently reduce price target by 13.6% to Rs 135, maintain “BUY” with 35% upside.
Share’s Data :-
BSE Code : 500670
Face Value : Rs 10.00
52week H/L : Rs 146.20 – 88.30
Market Cap. : Rs 1,575.76 Crores
National Fertilisers Ltd. share’s CMP is Rs 101.30 on 29th July 2011.
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