KSK Energy Ltd - Long term story remains intact; maintain Buy - Emkay

Reco: BUY
CMP: Rs 56
Target Price: Rs 81

- Operational performance in Q3FY14 missed our expectation as we considered Mahanadi unit-1 CoD for full quarter vs only 1M. Adjusting for same the performance was in-line

- Cut FY14/15 earnings mainly on adjusting Mahanadi CoD and delay in supply to TN under PPA from Jan-15 (May-14 earlier)

- While we believe the pain in the stock might remain for 1.5-2 years till Mahanadi is fully commissioned, however we do not see significant downside from current levels

- Valuations remain attractive - 0.5x15E book. Maintain Buy with a PT of Rs81/sh (could be higher; factoring conservative estimates). Key triggers would be Mahanadi – commissioning, PPA, and fuel-supply.

Source : Equity Bulls

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