TRF Mixed Bag, Retain Hold :Emkay

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TRF

Mixed Bag, Retain Hold

HOLD

CMP: Rs409                                        Target Price: Rs390

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n     Improved performance – Standalone Revenue up 4% yoy to Rs1.5 bn & Net profit of Rs32 nm – in line. Product delivers with 23% margins, Project disappoint with Rs60 mn EBIT loss

n     Auto components posts strong operational performance (1) Revenue up 29% (2) EBITDA margins up 110 bps yoy to 3.3%. But APAT low at Rs5 mn due to low other income & high tax

n     TRF shares optimistic outlook for FY12E (1) Order inflows at Rs10 bn (2) MHE revenue growth at 25% (3) Auto to drive growth – Sales Rs6 bn at 5% margin

n     Downgrade consolidated earnings by 9% yoy to Rs34.1 for FY12E and Rs39.0 for FY13E. Retain HOLD with revised price target of Rs390 per share (@10X FY13E)