Tamilnadu Newsprint & Papers - Results in line with est - Emkay

Reco: ACCUMULATE
CMP: Rs 113
Target Price: Rs 108

- Q1FY13 results were in line with est with revenues of Rs 3.5bn and PAT of Rs 112mn, -13%yoy, driven by REC income through power sale from green sources.

- Flat growth in sales against 9% production growth was on account of inventory pushed by the company in Q4FY12. However demand in the industry remains buoyant.

- EBITDA margins improved to 25.8% after weakness in H2FY12 at 17%. Avg Realisations increased by 5%qoq at Rs 44,000/mt however were flat on yoy.

- Improved demand scenario is likely to help the company to increase realization and help margin expansion. We maintain our accumulate reco on the stock.

Source : Equity Bulls

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