Chambal Fertilisers & Chemicals - Muted quarter; maintain Accu on attractive valuations - Emkay

Reco: ACCUMULATE
CMP: Rs69
Target Price: Rs98

- Q2FY13 performance remained muted. Though revenues at Rs 23.4bn, 43% yoy were ahead of est driven by higher trading, APAT at Rs 896mn, 7% yoy was below est

- APAT has been adjusted for one-offs (Rs 119mn of FX gains for FY12 shown as exceptional inc & Rs 41mn of FX gain for Q1FY13). Other inc included Rs 109mn profit on sale of ship

- EBITDA margins at 8.3% (est of 11.7%) stood lower due to higher contribution of trading & low margins in manufactured urea; shipping & textiles performance improved

- Maintain Accumulate with target of Rs 98. At CMP, stock trades at attractive valuations of 6.7x FY14 earnings. Any announcement on New Urea Inv. policy will be positive

Source : Equity Bulls

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