Showing posts with label JK Paper. Show all posts

06 May 2011

JK Paper -Demand robust, revise earnings upward BUY :: Emkay

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JK Paper

Demand robust, revise earnings upward

BUY

CMP: Rs 51 Target Price: Rs 90

n Q4FY11 results were in line with estimates with revenue growth of 7% yoy (-7% volume and +14% realisations) to Rs 3.1 bn and APAT growth of -7% yoy to Rs 251 mn

n EBITDA margins contraction of 60 bps yoy to 19.8% is attributed to high wood, coal & chemicals cost, however margins are expected to improve in FY12

n Company’s capex plan remains on schedule and capacity expansions would help volume growth. Prices to remain strong owing to buoyant demand

n We introduce our FY13E EPS of Rs 15.2, +3% yoy, and roll over our price target to FY13E basis with target price of Rs 90. Re-iterate BUY

31 January 2011

Buy JK Paper Results in line with estimates: Target Price: Rs 84:; Emkay

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India Equity Research Reports, IPO and Stock News
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JK Paper

Results in line with estimates

BUY

CMP: Rs 53 Target Price: Rs 84

n Q3FY11 results were in line with estimates with revenue growth of 18% yoy (8% volume and 10% realisations) to Rs 3.1 bn and PAT growth of 23% yoy to Rs 251 mn

n EBITDA margins contraction of 200 bps yoy to 20.8% is attributed to high input (wood) cost due to adverse monsoon, however the same is expected to improve by Q4FY11

n Company revised its capex to Rs 16.5 bn (previously Rs 15 bn) due to upwards revision in planned capacity - funding for capex plans is tied up

n Valuations remain compelling at FY12E P/E of 3.8x, EV/EBITDA of 3.2x and 40% discount to book value. We re-iterate BUY

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