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Last Updated : May 23, 2019 11:13 PM IST | Source: Moneycontrol.com

Accumulate Chambal Fertilizers; target of Rs 185: Dolat Capital

Dolat Capital recommended accumulate rating on Chambal Fertilizers with a target price of Rs 185 in its research report dated May 17, 2019.

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Dolat Capital's research report on Chambal Fertilizers


Chambal reported a strong 4QFY19 on the back of the newly commissioned Urea plant in Gadepan-3. Sales/EBITDA/Adj. PAT growth came in at 147.0/458.5/415.7% YoY to ` 26.1/4.1/2.4bn respectively. Gross margin contraction was due to higher RM prices, margins contracted by 730 bps YoY. The company reported a PAT of `919mn on account of an exceptional item of ` 1.97bn, which arose as the Ministry of Chemicals has not paid the additional fixed costs to urea units in India.


Outlook


We value Chambal at 9.5x FY21 EPS and arrive at a target price of ` 185. We resume coverage and recommend investors to Accumulate.


For all recommendations report, click here


Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.



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First Published on May 23, 2019 11:13 pm
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