United Phosphorus - March 2013 Results Preview - Motilal Oswal

- We estimate United Phosphorus (UNTP) will report 13% YoY growth in consolidated revenue to INR24b, 10% growth in domestic revenue and 13.3% growth in international revenue.

- EBITDA margin is expected to decline by 10bp YoY to 18.1% due to higher fixed cost, translating into EBITDA growth of 12.7% to INR4.36b.

- Higher tax and losses from associate to reduce PAT growth to 2.6% YoY to INR2.3b.

- Current valuations of 5.9x FY14E EPS and 3.8x EV/EBITDA are very attractive. Maintain Buy with a target price of INR180 (9x FY14E EPS).

Source : Equity Bulls

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