Nava Bharat Ventures Ltd - Limited upside until clarity on power plants/Zambia - Emkay

Reco: HOLD
CMP: Rs 191
Target Price: Rs 204

- 1Q13 APAT at Rs677mn, in line with our est. of Rs671mn; 28% gr yoy at APAT primarily led by better profitability in Ferro alloys business driven by higher realzn and lower cost.

- Power- Higher e-auction coal led to 24% yoy higher cost of gen; Ops resumed at old 64MW Odisha plant- to supply 20MW to GRIDCO @ Rs3/unit; new plant- 64/150MW COD in 2Q/4Q'13.

- Zambia-Coal sale started from Jun'12, avg realzn at $57/MT; 30k MT high grade extracted till date, 0.3MnMT FY13 target; 300MW plant - Const. started from May'12, completion in 3yrs.

- Retain FY13E/14E estimates; limited upside until clarity on (i) offtake/fuel arrangement of new power plants (64/150mw), (ii) Zambian ops' profitability and investment; Maintain Hold.

Source : Equity Bulls

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