Hold Jaiprakash Power Ventures Ltd - Emkay

Reco: HOLD
CMP: Rs 34
Target Price: Rs 45

Lower realizations and other income, Maintain Hold

- 1Q13 PAT at Rs1.8bn against our estimates of Rs2bn, on account of lower realizations (Rs2.9/unit vs. Rs3.0/unit est.) and other income (Rs91mn vs. Rs247mn est.)

- Karcham realizations at Rs3.6/unit are in line. However, Baspa and VishnuPrayag realizations at Rs1.9/unit are down 8% yoy and are below our est of Rs2.1/unit.

- Low downside risk with operational hydro capacity of 1700MW generating cash of Rs8bn (Market cap Rs78bn) and contributing Rs33/Share out of Rs45/Share fair value.

- But limited upside until clarity on - (1) fund raising of ~Rs20bn for NCD bullet repayment (Rs14.5bn), (2) Bina coal supply and (3) Dongri-tal II forest clearance; Retain Hold.

Source : Equity Bulls

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