Moneycontrol Be a Pro
Get App
Last Updated : Aug 03, 2015 06:55 PM IST | Source:

Buy KSK Energy Ventures; target of Rs 107: Emkay

Brokerage house Emkay Global Financial Services is bullish on KSK Energy Ventures and has recommended buy rating on the stock with a target price of Rs 107 in its research report dated June 4, 2015.

  • bselive
  • nselive
Todays L/H

Emkay's research report on KSK Energy Ventures

Adjusted loss was lower than our expectation mainly because of higher realizations and lower fuel cost per unit

Most important trigger for KSK is conversion of tapering linkage into permanent linkage, the decision on which is likely in Jun15. We assume that KSK will receive domestic coal linkage supplies


In a scenario of cancellation of linkage, we believe that KSK is likely to still deliver value as 2 years down the line coal is likely to be sufficiently available. This is because of the good PPAs it has signed, when PPA tenders are not coming up

"At 0.6x book stock remains attractive. We maintain BUY with Revised target price of Rs 107/sh (reduced due to no captive mine)", says Emkay Global Financial Services research report.

Adjusted loss at Rs 1252mn was lower than our expectation of a loss of Rs2440mn mainly because of higher realizations and lower fuel cost per unit. The average relaxations during the quarter was Rs4.80/unit vs (+15% yoy) and the average fuel cost/unit during the quarter was Rs2.30/unit (-7% yoy). The reported loss during the quarter was Rs224mn, which was supported by creation of a DTA of Rs 3176mn. The PLF for the quarter was 48.7% vs 52.1% in 4QFY15, consequently the generation declined by 5% to 1588mn units.

For all recommendations, click here

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

LIVE NOW... Video series on How to Double Your Monthly Income... where Rahul Shah, Ex-Swiss Investment Banker and one of India's leading experts on wealth building, reveals his secret strategies for the first time ever. Register here to watch it for FREE.
First Published on Jun 10, 2015 12:45 pm
Follow us on
Available On