NMDC - Concerns overdone; Maintain Buy - Emkay

- Operational performance broadly in line adjusting for SPV payment of Rs 3.4 bn and penalty of Rs 686 mn; Realizations rose 1% QoQ to Rs 3846/ tonne; Volume stood at 8.24 mt

- Adj. EBITDA at Rs 21.5 bn, up 9% YoY and 55% QoQ against estimate of Rs 21.2 bn. EBITDA/t at Rs 2611 was flat QoQ but down 15% YoY; Topline grew 24%/57% YoY/QoQ to Rs 32 bn

- Export volume stood at 0.87 mt, which helped in better realizations; While lump offtake still remains a concern, the company kept June prices unchanged

- We revise down our volume and realizations assumption for FY14 and introducing FY15 vol estimates at 31 mt. Attractive valuation (3xFY15EV/EBITDA); BUY with revised TP of Rs 165.

Source : Equity Bulls

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