Emkay's research report on DCM Shriram
Consolidated revenues at Rs 14.3bn were down 15% yoy and lower than our estimates on the back of lower than estimated bulk fertilizer trading as the company consciously remained conservative on bulk fertilizer trading
Consolidated EBITDA at Rs 822mn was up 22% yoy though lower than our estimates of Rs 1.6bn due to lower profitability from chlor vinyl business on account of maintenance shutdown at Bharuch plant and loss for the bioseed business
"We have revised our FY15E/16E earnings estimate lower primarily on the back of lower bulk fertilizer trading and lower average realizations for the chlor vinyl business. Revenue for FY15E/16E has been reduced by 7% each respectively. APAT estimate for FY15 has been reduced by 9% while we maintain our FY16 estimate. We have reduced our target price to Rs 246 thereby reducing our rating to from Buy to Accumulate", says Emkay Global Financial Services research.
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