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India Equity Research Reports, IPO and Stock News
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R o b u s t r e s u l t s a g a i n …
Robust topline (in line with our estimates), commissioning of remaining
500 MW (two units of Karcham Wangtoo) and lower other expenditure
YoY led to PAT of | 281 crore (above our estimates). Expectedly, interest
costs increased 96.9% YoY (due to commissioning of Karcham Wangtoo).
We have revised our FY12 PAT estimates upwards by 19.9%. The current
operational capacity of the company stands at 1700 MW. We maintain
BUY rating on the stock with a revised target price of | 45 due to 1) Delay
in capacity addition (For coal based power plants) and 2) possibility of
equity dilution to fund its investment in power projects.
ƒ Operational highlights for Q2FY12
The company generated 2946 million units (MUs) for the quarter (up
88% YoY and 211% QoQ). Average realisation for the quarter stood
at | 2.47/kwhr (sales realisation at 88% of generation). The company
has VERs worth | 9.31 crore.
ƒ Expect 250 MW of Bina Phase 1 in Q4FY12
We expect 250 MW of Bina Phase 1 to get commissioned in
February 2012. The company has obtained fuel linkage from Coal
India (SECL and CCL). Given the tepid production increase of Coal
India and the fact that many private IPPs are able to get linkage to
the tune of 50% (of 80% PLF) from Coal India , the company has
entered into stop gap arrangement (with permission of CERC) for
the use of captive mines in Amelia and Dongri. The coal from these
mines was to be used for Nigrie project (1320 MW) expected to be
commissioned in September 2013.
V a l u a t i o n
At the CMP of | 37, the stock is trading at a P/E of 31.7x and 7.9x on
FY12E and FY13E EPS, respectively. Similarly, on P/BV multiples, the
stock is trading at 2.3x and 1.0x FY13E, respectively. We are only taking
projects getting commissioned by FY15 in our valuation and have taken
out the Karchana Project from our valuation (since land acquisition for the
projects is yet to be completed).
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
R o b u s t r e s u l t s a g a i n …
Robust topline (in line with our estimates), commissioning of remaining
500 MW (two units of Karcham Wangtoo) and lower other expenditure
YoY led to PAT of | 281 crore (above our estimates). Expectedly, interest
costs increased 96.9% YoY (due to commissioning of Karcham Wangtoo).
We have revised our FY12 PAT estimates upwards by 19.9%. The current
operational capacity of the company stands at 1700 MW. We maintain
BUY rating on the stock with a revised target price of | 45 due to 1) Delay
in capacity addition (For coal based power plants) and 2) possibility of
equity dilution to fund its investment in power projects.
ƒ Operational highlights for Q2FY12
The company generated 2946 million units (MUs) for the quarter (up
88% YoY and 211% QoQ). Average realisation for the quarter stood
at | 2.47/kwhr (sales realisation at 88% of generation). The company
has VERs worth | 9.31 crore.
ƒ Expect 250 MW of Bina Phase 1 in Q4FY12
We expect 250 MW of Bina Phase 1 to get commissioned in
February 2012. The company has obtained fuel linkage from Coal
India (SECL and CCL). Given the tepid production increase of Coal
India and the fact that many private IPPs are able to get linkage to
the tune of 50% (of 80% PLF) from Coal India , the company has
entered into stop gap arrangement (with permission of CERC) for
the use of captive mines in Amelia and Dongri. The coal from these
mines was to be used for Nigrie project (1320 MW) expected to be
commissioned in September 2013.
V a l u a t i o n
At the CMP of | 37, the stock is trading at a P/E of 31.7x and 7.9x on
FY12E and FY13E EPS, respectively. Similarly, on P/BV multiples, the
stock is trading at 2.3x and 1.0x FY13E, respectively. We are only taking
projects getting commissioned by FY15 in our valuation and have taken
out the Karchana Project from our valuation (since land acquisition for the
projects is yet to be completed).
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