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Profitability resumes, Maintain estimates |
BUY
CMP: Rs 127 Target Price: Rs 157
n GNFC’s ammonia plant resumed operations in Q2FY11 and posted PAT of Rs 639mn after losses in previous two quarters
n Net revenues Rs 8 bn (+4.6%yoy) were ahead of estimates but PAT of Rs 639 mn (+5.3%yoy) was broadly in line
n Fertiliser segment profitability continues to remain nil while chemical segment reported margins of 29% (-700bps yoy)
n Fine tuned revenue estimates but maintain FY11E/12E earnings estimates at Rs 11.6 / 22.4; recommend BUY
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