GSFC - Valuations play - upgrade to Accumulate - Emkay

- GSFC's Q4FY13 results were in line with est with revenues of Rs 16.9bn, +11% yoy, EBITDA margins of 10.6% and APAT of Rs 1.1bn, -40%yoy

- Current quarter results are affected due provisioning for wage revision of Rs 520mn (adjusted in results) and Rs 400mn fertiliser inventory write down

- Chemical segment margins remained under pressure due unfavourable Caprolactam - Benzene spread and lower ammonia and other chemical sales

- Upgrade the stock from HOLD to Accu with price target of Rs 70 as current valuations at 3.8x FY14 PE and 50% discount to book value and dividend yield of 5% remains attractive

Source : Equity Bulls

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