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For 2QFY2012, GIPCL’s bottom line rose by 77.5% yoy to `28cr, in-line with our
estimates. Bottom-line growth was aided by higher yoy capacity in 2QFY2012.
(The 250MW SLPP station II became commercially operational in September 2010
and, hence, did not contribute to the company’s top line in the first two months of
2QFY2011). Further, higher availability factor reported by power generation
stations led to higher recovery of fixed costs. Vadodara stations I and II operated
at PAF of 97.7% (95.4% in 2QFY2011) and 98.9% (90.7% in 2QFY2011),
respectively. SLPP I and II stations operated at PAFs of 78.4% (68.0% in
2QFY2011) and 61.6% (53.2% in 2QFY2011), respectively. We maintain our Buy
recommendation on the stock.
Higher availability of plants results in healthy 41.9% yoy top-line growth: GIPCL
posted top-line growth of 41.9% yoy, driven by higher availability factor even
though generation rose only marginally by 3% yoy to 985MU. Modest growth in
generation was on account of lower yoy PLFs reported by Vadodara stations I and
II. During 2QFY2012, Vadodara I posted PLF of 70.7% (79.3% in 2QFY2011)
and Vadodara II posted PLF of 37.3% (56.4% in 2QFY2011). It has to be noted
that the second quarter is a seasonally weak quarter on account of the monsoon
season (resulting in low demand and affecting mining work) and maintenance
activities undertaken by the company.
Outlook and valuation: GIPCL is well placed in terms of fuel security, with the
entire fuel requirement of 500MW SLPP stations I and II met from captive lignite
mines. Further, power generated by the company has assured offtake through
PPAs signed under the cost-plus model, ensuring regulated but fixed returns.
At the CMP of `77, the stock is trading at 0.7x FY2013 P/BV. We have assigned a
P/BV of 0.9x on FY2013 book value to arrive at a target price of `95.
We maintain our Buy recommendation on the stock.
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
For 2QFY2012, GIPCL’s bottom line rose by 77.5% yoy to `28cr, in-line with our
estimates. Bottom-line growth was aided by higher yoy capacity in 2QFY2012.
(The 250MW SLPP station II became commercially operational in September 2010
and, hence, did not contribute to the company’s top line in the first two months of
2QFY2011). Further, higher availability factor reported by power generation
stations led to higher recovery of fixed costs. Vadodara stations I and II operated
at PAF of 97.7% (95.4% in 2QFY2011) and 98.9% (90.7% in 2QFY2011),
respectively. SLPP I and II stations operated at PAFs of 78.4% (68.0% in
2QFY2011) and 61.6% (53.2% in 2QFY2011), respectively. We maintain our Buy
recommendation on the stock.
Higher availability of plants results in healthy 41.9% yoy top-line growth: GIPCL
posted top-line growth of 41.9% yoy, driven by higher availability factor even
though generation rose only marginally by 3% yoy to 985MU. Modest growth in
generation was on account of lower yoy PLFs reported by Vadodara stations I and
II. During 2QFY2012, Vadodara I posted PLF of 70.7% (79.3% in 2QFY2011)
and Vadodara II posted PLF of 37.3% (56.4% in 2QFY2011). It has to be noted
that the second quarter is a seasonally weak quarter on account of the monsoon
season (resulting in low demand and affecting mining work) and maintenance
activities undertaken by the company.
Outlook and valuation: GIPCL is well placed in terms of fuel security, with the
entire fuel requirement of 500MW SLPP stations I and II met from captive lignite
mines. Further, power generated by the company has assured offtake through
PPAs signed under the cost-plus model, ensuring regulated but fixed returns.
At the CMP of `77, the stock is trading at 0.7x FY2013 P/BV. We have assigned a
P/BV of 0.9x on FY2013 book value to arrive at a target price of `95.
We maintain our Buy recommendation on the stock.
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