Hold GMR Infra - TP Rs.26 - Geojit BNP Paribas Financial Services

- After the tariff hike at DIAL (Delhi International Airport) the project is expected to break-even in FY13.

- However, the company's power portfolio would continue to face challenges of fuel supply.

- The company is required to fund an additional Rs.1800 crore of equity in its projects, which would be challenging in the current circumstances.

- Company has synchronized two units of its Kamalanga power plants in FY13. It seems that its benefits have already been priced in the current market rate of the stock.

- The target price has been revised to Rs.26 from Rs.28 earlier to account for the revised assumptions for DIAL and power assets.

- Successful divestment of stakes in assets to raise funds for its growth plans should be a positive on the stock price.

- Downside risks include higher leverage and delays in commissioning of projects.

Source : Equity Bulls

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