Adani Power (BUY): Higher gross profit results in higher operating profit - Ambit

Adani Power's 4QFY13 revenues increased by 79% YoY to Rs18.9bn led by volume growth of ~66% and average realisation growth of 9%. Whilst the EBITDA came in at Rs3.7bn, adjusted loss after tax was Rs6.3bn owing to high interest and depreciation charges. We maintain our BUY stance and keep our FY14 estimates unchanged on the back of a) commissioning of the profitable Tiroda I & II projects; b) possibility of Tiroda III and Kawai being awarded domestic coal linkage and c) hike in Mundra tariff on the back of the recent CERC ruling. The stock currently trades at 1.8x FY14 P/B.

Source : Equity Bulls

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