GMR Infrastructure Subdued quarter – Inline performance – Buy ::Emkay

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GMR Infrastructure

Subdued quarter – Inline performance – Buy

BUY

CMP: Rs 26                                       Target Price: Rs 38

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n     Net loss at Rs 625mn v/s Rs 483mn - led by marginally lower operational numbers for Power and Airport segment, Roads inline, EPC & other segment ahead of estimates 

n     Rev. up 48.3% to Rs 18.1bn v/s exp. of Rs 17.5bn led by EPC segment +282% yoy to Rs2.9 bn v/s 1.7 bn & others at Rs 1.9bn v/s 1.2bn, EBITDA up 40% at Rs 5bn v/s exp. Rs 4.7bn

n     Delays in aero charge hike at DIAL continue to drag the overall performance. Restriction to collect ADF leading to higher bridge loan & hence higher interest exp.   

n     Maintain BUY rating PT Rs 38 offers 49% upside from the current market price. Peaking interest rates cycle will be the key drivers of value in the near term