Please Share:: 
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
IDFC
IPPs- Risks exists over the medium term: Investor concerns on Infra exposure
especially power exposure is justified. The significant correction in valuation for
Infra companies makes it difficult for promoters to raise fresh capital impacting
projects under development. Performance of existing projects is also getting
impacted due to low PLFs due to fuel shortage or lower offtake from State SEB’s.
Higher proportion of operational projects (~60% of portfolio), reduces the risk but
we do not rule out restructuring for some power related exposures over the medium
term.
Margins already under pressure, slower loan growth could impact profit
growth: Project sanctions and disbursements have slowed over the last qtr and near
term loan growth could moderate on lack of availability of equity funding and
cautious outlook for IPPs.Margins have started moderating with incremental spreads
under pressure and now with possibility of slower loan growth (main driver of profit
growth), profit growth could be impacted.
Maintain Neutral: Valuations reasonable but risks remain: We revise down
earnings by 4-6% for FY12-13E as we factor in lower margins and growth. We thus
revise down our Mar-12 PT to Rs165/share (Sep-11 PT of Rs170/share earlier) based
on 2 stage Gordon growth model implying 1.7x FY13 book. Current valuations at
1.5x FY13 is reasonable but risk to medium term growth and asset quality is high
especially for the power portfolio given fuel shortage and low merchant rates.
Inability of promoters to raise capital for on-going projects could impact growth.
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
IDFC
IPPs- Risks exists over the medium term: Investor concerns on Infra exposure
especially power exposure is justified. The significant correction in valuation for
Infra companies makes it difficult for promoters to raise fresh capital impacting
projects under development. Performance of existing projects is also getting
impacted due to low PLFs due to fuel shortage or lower offtake from State SEB’s.
Higher proportion of operational projects (~60% of portfolio), reduces the risk but
we do not rule out restructuring for some power related exposures over the medium
term.
Margins already under pressure, slower loan growth could impact profit
growth: Project sanctions and disbursements have slowed over the last qtr and near
term loan growth could moderate on lack of availability of equity funding and
cautious outlook for IPPs.Margins have started moderating with incremental spreads
under pressure and now with possibility of slower loan growth (main driver of profit
growth), profit growth could be impacted.
Maintain Neutral: Valuations reasonable but risks remain: We revise down
earnings by 4-6% for FY12-13E as we factor in lower margins and growth. We thus
revise down our Mar-12 PT to Rs165/share (Sep-11 PT of Rs170/share earlier) based
on 2 stage Gordon growth model implying 1.7x FY13 book. Current valuations at
1.5x FY13 is reasonable but risk to medium term growth and asset quality is high
especially for the power portfolio given fuel shortage and low merchant rates.
Inability of promoters to raise capital for on-going projects could impact growth.
No comments:
Post a Comment