Nava Bharat Ventures - Lower MAT credit impacted PAT, Maintain Accumulate :Emkay

Please Share:: India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��

Nava Bharat Ventures Ltd.

Lower MAT credit impacted PAT, Maintain Accumulate

ACCUMULATE

CMP: Rs237                                        Target Price: Rs290

---

n     Q112 APAT of Rs528mn (down 51% yoy) is below est. on lower MAT credit. Highlights - merchant tariff Rs4.0/unit, PLF 84% (lower demand), cost of generation Rs2.3/unit

n     Contract with TISCO to start in 2Q. Under the deal (1) NBVL to supply 35000MT ferro chrome for 3 yrs, (2) 17MW captive power supply at Rs3.9/unit & (3) fixed margin of Rs1000/MT 

n     Zambia coal trading to start from Sep11 - 1mnMT in FY14E. 64MW COD still pending - expected in 2Q. Indonesian investment safe, NBVL to get 20% offtake also.

n     Review earnings post concall. Reiterate NBVL is better placed in terms of fuel security (washery rejects and Zambia hedge) and offtake (natural hedge - ferro alloys). Accumulate