Tamilnadu Newsprint (TNPL) - Buy on compelling valuations - Emkay

- Q4FY13 results were operationally in line with est with Sales of Rs 5.8bn, +3% yoy and EBITDA margins of 20.5% while higher other income boosted profit. PAT doubled to Rs 411mn

- Reduction in inventories supported sales volumes (despite higher base) and also helped company to reduce working capital by Rs 2.1bn and lower its debt

- Paper realizations remain strong and various price hikes taken in Q4FY13 to boost margins in subsequent quarters. Maintain FY14 est, introduce FY15 est with EPS of Rs 25.3

- We reiterate our BUY reco with compelling valuations of 5.4xFY14E EPS, EV/EBITDA of 3.5xFY14 and 40% discount to FY14 book value of Rs 162.

Source : Equity Bulls

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