Emkay Research view on GMR Infrastructure
Emkay Research has come out with its report on GMR Infrastructure. The research firm kept the stock under review category and will revise the stock target price after the final order for DIAL is through.
January 10, 2012 / 13:07 IST
Emkay Research has come out with its report on GMR Infrastructure. The research firm kept the stock under review category and will revise the stock target price after the final order for DIAL is through.
Emkay Research report on GMR Infrastructure:Prima facie terms included in consultation paper (CP) are negative for DIAL. CP terms disallows returns on real estate (RE) deposits collected by DIAL, thus capping RE upsides WACC at 10.3%v/sexp. 12%, Non approval returns on RE deposits will hurt profitability. Near term Rev. likely to be higher than our exp. due to reimbursement of accum. losses (Apr09-Mar12) driving 280% increase over FY13&FY14 DIAL RE comprised 24% of TP, Regulator has cornered DIAL by offering no return on erstwhile RE deposits & we caution about prospective returns that DIAL can generate from RE Ratings & TP are kept under review for GMR till tariff mechanism is finalized. By Feb
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