Moneycontrol Be a Pro
Get App
Last Updated : Mar 04, 2016 05:52 PM IST | Source: Moneycontrol.com

Hold KSK Energy Vent;target of Rs 39: Axis Securities

Axis Securities recommended hold rating on KSK Energy Vent Ind with a target price of Rs 39 in its research report dated February 16, 2016.

 
 
live
  • bselive
  • nselive
Volume
Todays L/H
More

Axis Securities's research report on KSK Energy Vent

KSK’s Q3 adj. loss of Rs1.3bn was in line with our estimate.After 10 quarters, EBITDA of Rs 5.2 bn (up 3-fold YoY) now covers interest cost on improved utilization (PLF) mainly at Mahanadi plant. However, leverage continues to be cause for concern (6.1xas of Sep-15). Management has now taken a view to further increase the capacity of Mahanadi plant to 2.4 GW from 1.2 GW. While the company has already incurred Rs 50 bn towards common infrastructure, it would need additional Rs 50 bn for expansion. This implies a capital cost of Rs 83 mn/MW as against earlier expectation of Rs 75 mn/MW. The company already has PPAs to support the expansion. However, it currently has temporary linkage for coal till Mar-16 and awaits a government policy on the same.

For all recommendations, 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.



Get access to India's fastest growing financial subscriptions service Moneycontrol Pro for as little as Rs 599 for first year. Use the code "GETPRO". Moneycontrol Pro offers you all the information you need for wealth creation including actionable investment ideas, independent research and insights & analysis For more information, check out the Moneycontrol website or mobile app.
First Published on Mar 4, 2016 05:52 pm
Loading...
Sections
Follow us on
Available On