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Monnet Ispat
1.1050 MW power plant at Angul district in Orissa is progressing well –
a. 1500 tonnes of equipment is on site. BHEL is working on the boiler.
b. The company has signed additional PPA for 425MW with the state of WB
at Rs 3.2/Unit.
c. The company has drawn down debt and PE funds for power plant
construction.
2. Commissioning of 80 MW power plant is delayed from Q4FY11 to March
2011.
3. Through its 51% owned subsidiary, company has set up and commissioned 4
Mio TPA of coal washery.
4. Sponge Iron prices are firm at 18000-19000 Rs/MT in Q4FY11.
Reiterate Buy with a PT of Rs730: We derive our price target using sum-ofthe-
parts methodology. We continue to value the power business at 7x
EV/EBITDA, the steel business at 5.5x EV/EBITDA on FY12E financials, and
the equity invested in its uncommissioned power plant at 2.2x P/BV.
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
Monnet Ispat
1.1050 MW power plant at Angul district in Orissa is progressing well –
a. 1500 tonnes of equipment is on site. BHEL is working on the boiler.
b. The company has signed additional PPA for 425MW with the state of WB
at Rs 3.2/Unit.
c. The company has drawn down debt and PE funds for power plant
construction.
2. Commissioning of 80 MW power plant is delayed from Q4FY11 to March
2011.
3. Through its 51% owned subsidiary, company has set up and commissioned 4
Mio TPA of coal washery.
4. Sponge Iron prices are firm at 18000-19000 Rs/MT in Q4FY11.
Reiterate Buy with a PT of Rs730: We derive our price target using sum-ofthe-
parts methodology. We continue to value the power business at 7x
EV/EBITDA, the steel business at 5.5x EV/EBITDA on FY12E financials, and
the equity invested in its uncommissioned power plant at 2.2x P/BV.
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