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Analysts' corner

GVK Power & Infrastructure & Nava Bharat Ventures

SITeam  |  Mumbai 

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    Power producers in dark, but worst yet to come GVK PIL Q2 net down 11% GVK acquires 13.5% in MIAL for Rs 1,140 cr GVK to acquire Siemens'14% stake in Bangalore international airport GVK Infra Q1 net soars 76% to Rs 59 cr

GVK POWER & INFRASTRUCTURE
Reco price: Rs 11
Target price: Rs 25
GVK's Shivpuri Dewas highway (332-km length) is now estimated to yield an NPV value of Rs 510 crore. Accordingly, analysts have cut the price target to Rs 25 versus Rs 28 earlier. Analysts' channel checks suggest an average revenue of Rs 10 million per day in FY16 (first year of tolling). PE infusion at airport, transportation and power vertical would be the key de-leveraging catalyst. Maintain buy.

— Bank of America Merrill Lynch

NAVA BHARAT VENTURES
Reco price: Rs 180
Target price: Rs 210
Q2FY12 adjusted net profit of Rs 36 crore (down 59 per cent yoy) is below estimates on low-merchant realisations (Rs 3.3 versus Rs 3.7/unit expected), lower PLF (82 versus 87 per cent expected) and lower MAT credit. Contract with TISCO (starting mid-Q3) will provide some hedge for falling power profitability but remain insufficient. Maintain accumulate.

— Emkay Global

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Analysts' corner

GVK Power & Infrastructure & Nava Bharat Ventures

GVK's Shivpuri Dewas highway (332-km length) is now estimated to yield an NPV value of Rs 510 crore. Accordingly, analysts have cut the price target to Rs 25 versus Rs 28 earlier. Analysts' channel checks suggest an average revenue of Rs 10 million per day in FY16 (first year of tolling). PE infusion at airport, transportation and power vertical would be the key de-leveraging catalyst. Maintain buy.

GVK POWER & INFRASTRUCTURE
Reco price: Rs 11
Target price: Rs 25
GVK's Shivpuri Dewas highway (332-km length) is now estimated to yield an NPV value of Rs 510 crore. Accordingly, analysts have cut the price target to Rs 25 versus Rs 28 earlier. Analysts' channel checks suggest an average revenue of Rs 10 million per day in FY16 (first year of tolling). PE infusion at airport, transportation and power vertical would be the key de-leveraging catalyst. Maintain buy.

— Bank of America Merrill Lynch

NAVA BHARAT VENTURES
Reco price: Rs 180
Target price: Rs 210
Q2FY12 adjusted net profit of Rs 36 crore (down 59 per cent yoy) is below estimates on low-merchant realisations (Rs 3.3 versus Rs 3.7/unit expected), lower PLF (82 versus 87 per cent expected) and lower MAT credit. Contract with TISCO (starting mid-Q3) will provide some hedge for falling power profitability but remain insufficient. Maintain accumulate.

— Emkay Global

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