SPA Research is bullish on Nava Bharat Ven has recommended buy rating on the stock with a target price of Rs 261 in its research report dated February 18, 2016.
SPA Research's research report on Nava Bharat Ven
NBVL’s reported numbers were largely in-line with our estimates excluding the one-off discount of INR 130 mn provided to a UK client, which was included in revenues. Resultantly standalone top-line de-grew by 12.1% led by 23.8% decline in ferro alloy’s revenues. Power segment reported flat revenues at INR 1568 mn on the back of 2.6% dip in realizations. NBEIL achieved PLF of 83% during the last quarter and reported revenue & profit of INR 1383 mn & INR 536 mn respectively in Q3FY16. We continue to retain our BUY rating on the stock with a target of INR 261.
NBVL continues to remain an ideal play on firm merchant power tariffs in Southern India. Domestic power segment will continue to be driven by visibility in merchant power realisations. Commencement of Orissa operations in addition to 150 MW power plant in AP will drive the near term growth. Improving probability of commencing new 300 MW Zambian power plant from Q2FY17 post financial closure, provides visibility for significant growth in consolidated earnings. We retain our BUY rating on the stock with a SoTP based target of INR 261.
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