Arshiya International - Status Quo - Emkay

- Operational results in-line with estimates; forex loss and higher tax rate leads to below estimated (-7%) PAT. Conso. debt marginally up by Rs 750mn QoQ to Rs 24.3bn

- AIL dilutes equity by 23% through issuance of warrants to promoters at conversion rate of Rs 145/sh. On full conversion promoter holding to increase to 55.3% from pre-issue 44.9%

- 5 new rakes, 2 warehouses in Mumbai FTWZ, part of rail sidings and phase 1 of Khurja Distripark (delayed) are expected to be in operations in H2FY13

- Maintain Buy with TP of Rs 172. Dilution from equity issuance is mitigated by expansion in rail business. At TP, AIL will trade at P/E, P/BV & EV/EBITA of 6.7x, 0.9x & 6.6x on FY14E.

Source : Equity Bulls

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