Deepak Fertilisers Continues to impress, re-iterate BUY ::Emkay

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Deepak Fertilisers

Continues to impress, re-iterate BUY

BUY

CMP: Rs 167                                       Target Price: Rs 250

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n     Q4FY11 results were in line- Revenues grew by 32% yoy to  Rs 4.3 bn & Adjusted EBITDA grew by 13% yoy to Rs 903 mn. APAT of Rs 495 mn was up 11% yoy

n     Chemical segment reported healthy growth led by strong increase in manufactured chemicals sales volumes. However, margins dipped ~280bps yoy

n     Fertiliser price realizations increased 37% yoy which drove revenue growth. Margins improved on a yoy basis.

n     New TAN plant to drive growth in FY12. Maintain FY12E estimates of Rs 25.2. Reiterate BUY with target of Rs 250