KRChoksey has recommended hold rating on Adani Power with a target of Rs 104, in its August 6, 2011 research report.
“Adani Power Ltd (APL) reported Q1FY12 results below our and market expectations. Net sales de-grew by 4% q-o-q to Rs 818 crore largely on account of lower generation and merchant realization during the quarter.Net generation remained flat at 3.2 BU against 3.0 BU in Q4FY11 largely on account of 20 days plant shutdown at Mundra-I for regular maintenance and another 15 days shutdown at Mundra-III for synchronization of 2nd unit. PLF for APL stood at 74% against 80% reported in Q1FY11. Average realizations were disappointing at Rs 2.8/unit, lower by 10% QoQ and 18% YoY on the back of lower merchant realization and availability of lesser units for merchant sale. Fuel cost for APL increased by 22% QoQ and 10% YoY to Rs 1.04 per unit in Q1FY12. Management attributed the same to the unfavourable operating climate and disturbance due to shutdown activities. O&M cost, however declined by 17% QoQ to Rs 0.24 per unit.”
“APL has disappointed in Q1FY12 with lower generation, realizations and operating efficiency. It is currently facing headwinds in terms of coal price risk due to benchmark revision of Indonesian coal, MAT rate to be applicable under DTC on SEZ units and lower realizations as SEBs continue to shy away from merchant market. We do not see any fuel supply constraints for Mundra plant during FY12 as APL is sourcing its coal requirement from Indonesian mines. We have assumed use of high cost imported coal at Tiroda plant considering offtake constraints of domestic coal. We revise our estimates downwards on account of lower merchant realization, equity dilution due to Tiroda buy-out and higher Indonesian fuel cost. We maintain our “HOLD” recommendation on the stock with revised target price of Rs 104,” says KRChoksey research report.
Disclaimer: The views and investment tips expressed by investment experts on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
沒有留言:
張貼留言