Emkay Global Financial Services has recommended a hold rating on JK Paper with a target of Rs 18. APAT was down by 16% YoY to Rs 59 million (against our expectation of Rs 110 million).
Emkay Global Financial Services has recommended a hold rating on JK Paper with a target of Rs 18 in its January 22, 2009 research report. "Net revenues increased by 29.7% to Rs 2.7 billion (driven by 11.5% volume growth and 16.3% realisation growth). APAT was down by 16% YoY to Rs 59 million (against our expectation of Rs 110 million). During the quarter company suffered from lower availability of linkage coal resulting in increase in power cost. We reduce our price target from Rs 32 to Rs 18 based on 65% discount to FY09 estimated book value. High D/E of 1.7x and company’s ability to maintain dividend payout of 40%+ are our key concerns, Hold," says Emkay Global Financial Services' research report.
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