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Lanco Infratech:
> Our SOTP-based 12-m target price of Rs43
> We have already reflected high fuel costs and interest expenses in the valuation of Lanco’s upcoming
power projects
Our bull and bear case valuations for the stock implies potential upside of about 77%/299%, respectively
We value the power business at Rs29.9/share, which implies 1.3X FY12E P/B
High debt is a concern, but operating cash flow is sufficient to cover interest and debt repayments
Capacity addition to be become 3X over next 3 years
With funding structure being 80:20, net debt to equity to increase
to 4.5X by FY13E…
...however, we believe cash flows after meeting the debt obligations are sufficient to meet the equity
requirements
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
Lanco Infratech:
> Our SOTP-based 12-m target price of Rs43
> We have already reflected high fuel costs and interest expenses in the valuation of Lanco’s upcoming
power projects
Our bull and bear case valuations for the stock implies potential upside of about 77%/299%, respectively
We value the power business at Rs29.9/share, which implies 1.3X FY12E P/B
High debt is a concern, but operating cash flow is sufficient to cover interest and debt repayments
Capacity addition to be become 3X over next 3 years
With funding structure being 80:20, net debt to equity to increase
to 4.5X by FY13E…
...however, we believe cash flows after meeting the debt obligations are sufficient to meet the equity
requirements
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