Nava Bharat Ventures Ltd - Q3FY12 Result Update - Emkay

Reco: ACCUMULATE
CMP: Rs 185
Target Price: Rs 204

'Power' less performance, Maintain Accumulate

- 3Q12 APAT of Rs378mn (down 22% yoy) is below estimates of Rs401mn; led by Power - lower PLF (71% vs 85% yoy) and higher generation cost (Rs3.1/unit vs. Rs2.1/unit yoy)

- Ferro chrome supply to TISCO at conversion price of Rs27000/ton (including power cost); Realizations for Silico manganese stood at ~Rs55000/ton

- Zambia coal trading to start from Apr'12 with production to ramp-up from initially 30000MT/month to 50000MT/month by end of FY13; 64MW COD still pending - deferred to 1Q13

- Earnings cut by 20%/26% for FY12E/FY13E respectively on delay in Zambia, lower volumes, higher fuel cost and lower MAT credit; Maintain Accumulate with revised TP of Rs204.

Source : Equity Bulls

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