United Phosphorus - Muted quarter - Emkay

Reco: ACCUMULATE
CMP: Rs 118
Target Price: Rs 172

- Q2FY13 results were below est. Consol revenues stood at Rs 18.6bn, 5% yoy, EBITDA margins at 17.6% was below est, APAT stood at Rs 1.25bn, -22% yoy

- Topline growth remained muted as volumes degrew by 2% yoy. Pricing increased by 5% yoy while exchange gain contributed 2% to revenue growth

- Unfavorable weather conditions globally impacted growth during H1FY13. However, management maintained its guidance of 15% revenues growth with margins of 18-20%

- Revise est to Rs 16.1/19.5 for FY13/14 to reflect margin pressures. However, maintain Accu on attractive valuations. At CMP, UPL trades at 6.1x FY14 earnings & 4.2x EV/EBITDA

Source : Equity Bulls

Keywords