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Fertiliser Sector Update_251011

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					                                                                      Fertiliser Sector Update




                                                                                                                                                 Sector Update
                                                                    Q2FY12 performance remains encouraging

                                           ¾ Q2FY12 results for agri-inputs universe (ex Tata Chemicals,
October 25, 2011

                                               results pending) has been encouraging with revenues and
 Company           Reco      CMP     TP        APAT above our est by 10% and 14%, respectively
 Chambal           Accu        88     98
                                           ¾ Companies’ fertiliser division performance has been
 Coromandel        Buy        333    435      encouraging due to sharp increase in fertiliser prices despite
 Deepak            Buy        165    250      140bps yoy / 80bps qoq decline in EBIT margins to 11.7%
 GNFC              Buy         91    135
                                           ¾ Chemical segment margins also remain robust with EBIT
 GSFC              Buy        461    530
                                               margins at 30% (+20bps yoy / 150 bps qoq)
 Rallis            Buy        160    197
 UPL               Buy        142    215   ¾ Post the results we have upgraded earnings for DFPCL while
                                               Rallis has seen downgrade. Chambal (upgrade) has been
 Tata Chem         Accu       312    400
                                               adjusted for withdrawal of its shipping demerger
Source: Capitaline, Emkay Research
                                           ¾ Managements outlook on agri business (fertilisers and
                                               agrochemicals) remain positive on account of encouraging
                                               outlook for Rabi crop and strong farm produce prices

                                           ¾ We expect that while rising input cost may put pressure on
                                               chemical segment margins in subsequent quarters global
                                               slowdown may also hurt demand

                                           ¾ Raw material availability for complex fertiliser remain our key
                                               concern while any further price increase in complex fertiliser
                                               prices may hamper fertiliser demand

                                           ¾ UPL and DFPCL are our top pick post the results along with
                                              GSFC (BUY on attractive valuations) and Coromandel
                                              (earnings momentum to continue)

                                           ¾ We also recommend BUY on Tata Chemicals pre results on
                                              expectation of strong Q2FY12 results



                                                                                                  Current     Previous     Earnings change
                                                  Company                  CMP          TP
                                                                                                   Reco         Reco        FY12      FY13
                                           Chambal Fertilisers                88        98      Accumulate       Buy          3%       -4%
                                           Coromandel Int'l                  333       435              Buy      Buy          NA       NA
                                           Deepak Fertilisers                165       250              Buy      Buy          6%      10%
                                           GNFC                               91       135              Buy      Buy          NA       NA
                                           GSFC                              461       530              Buy      Buy          NA       NA
                                           Rallis India                      160       197              Buy      Buy        -10%       -6%
                                           United Phosphorus                 142       215              Buy      Buy          1%       0%
                                           Tata Chemicals                    312       400      Accumulate    Accumulate      NA       NA
                                           Source: Emkay Research

                                           *Tata Chemicals will declare its results on 11th Nov, 2011

  Rohan Gupta
  rohan.gupta@emkayglobal.com
  +91 22 6612 1248

  Balwindar Singh
  balwindar.singh@emkayglobal.com
  +91 22 6612 1272


Emkay Global Financial Services Ltd                                                                                                          1
                                   Fertiliser                                                                  Sector Update


                                   Q2FY12 posted encouraging results with revenues / APAT higher by 10% /
                                   14% from est
                                   Q2FY12 results for our universe (seven out of eight declared their Q2FY12 results) remain
                                   encouraging with revenues and PAT being 10% and 14% above our est on aggregate level
                                   (though Tata chemicals results are still awaited). Aggregate revenues increased by 14%
                                   yoy / 27% qoq. Topline surprise was mainly driven by higher than estimated fertiliser
                                   revenues.
                                   Aggregate
                                    Rs mn                    Q2FY12E      Q2FY12A          % Deviation       % yoy      % qoq
                                    Net sales                  86069          94435                10%        14%         27%
                                    EBITDA                     14498          15608                 8%        12%         23%
                                    EBITDA %                   16.8%         16.5%                  -32        -33         -56
                                    Dep                         2462           2465                 0%        10%          8%
                                    Int                         1615           1491                -8%        29%         -10%
                                    OI                           990           1113                12%         -7%        13%
                                    PBT                         9724          12764                31%         9%         31%
                                    APAT                        8075           9174                14%        11%         34%
                                    Source: Emkay Research


                                   Higher fertiliser revenues drove topline
                                   Despite volume pressure in Q2FY12 which was mainly affected by lower trading of DAP
                                   and MOP, fertiliser revenues increased by 6% yoy and was above our estimates. Sharp
                                   increase in fertiliser prices has boosted fertiliser revenues. We will like to highlight that
                                   despite sharp increase in raw material prices, companies have been able to maintain their
                                   margins since fertiliser EBIT margins at 11.7% were down marginally by 140bps yoy /
                                   80bps qoq. With companies’ ability to maintain margins despite sharp increase in raw
                                   material cost and currency depreciation, we believe that companies margins will remain
                                   protected under NBS.

                                   Aggregate EBITDA margins a tad lower by 30bps to 16.5% mainly due to
                                   higher fertiliser revenues
                                   Aggregate EBITDA margins at 16.5% were marginally lower by 30bps compared to our
                                   estimates mainly due to higher fertiliser revenues. Margins in fertiliser are comparatively
                                   lower than the chemicals. With sharp increase in interest rates aggregate interest cost
                                   increased by 29% yoy however it was 8% below our est while depreciation and other
                                   income did not show any significant difference from our est.

                                   Coromandel, GSFC gave positive surprises while Rallis disappointed
                                   In Q2FY12 Coromandel and GSFC posted strong results with PAT 33% and 19% above
                                   est. Coromandel results were mainly driven by higher fertiliser margins (13.8% actual vs est
                                   of 12%) while GSFC benefited from strong Caprolactam – Benzene spread resulting into
                                   EBITDA margins of 24% vs est of 19.9%. We maintain our FY12 est for both these
                                   companies (despites higher than estimated results) since we expect that benefit of higher
                                   margin for Coromandel is likely to be compensated by decline in complex fertiliser volumes
                                   while for GSFC, chemical spreads are likely to decline by Q4FY12. Rallis results
                                   disappointed on account of lower than estimated revenues and EBITDA margins and hence
                                   we have downgraded est for Rallis by 10% / 6% for FY12 / FY13.

                                   Deepak fertiliser and UPL are our top picks post the results
                                   Post the results we have upgraded our est for Deepak fertiliser by 6% / 10% for FY12 /
                                   FY13E mainly on account of strong performance of its fertiliser division. We remain positive
                                   on the stock post the results and expect company to benefit from ramp up of its TAN plant
                                   by Q4FY12.

                                   UPL management upgraded its revenues guidance for FY12 to 30-35% from previous 25-
                                   30% on account of encouraging performance of all the territories. We have upgraded
                                   revenue est for UPL by 5% for FY12E and FY13E however have maintained earnings

Emkay Research   25 October 2011                                                                                               2
                                                   Fertiliser                                                                      Sector Update

                                                   estimate to factor some margin pressure. With strong valuations and earnings growth of
                                                   20%, we reiterate our BUY recommendation on the stock.

   Rs mn                       Revenues                    EBITDA               EPS                P/E(x)           RoE (%)           RoCE (%)
   Companies                  FY12         FY13        FY12         FY13     FY12     FY13    FY12          FY13   FY12     FY13    FY12     FY13
   Chambal Fert              51,240       51,398       8,181        8,030     9.0      8.9     9.8           9.9   20.6     17.4     14.2    13.7
   Coromandel Fert           97,619      112,424      11,250       13,785    26.4     32.3    11.7           9.6   34.0     33.5     30.2    32.1
   Deepak Fert               20,981       22,137       4,249        4,754    26.7     30.6     6.2           5.4   19.6     18.6     18.5    19.6
   GNFC                      32,425       35,825       6,217        8,269    19.3     25.7     4.8           3.6   13.1     15.4     12.8    15.7
   GSFC                      54,858       58,863      10,678       10,436    84.6     78.4     5.5           5.9   21.5     16.7     27.6    22.4
   Rallis India              13,950       17,607       2,624        3,525     8.0     10.9    20.3          14.8   27.6     30.5     34.7    39.7
   United Phosphorus         76,494       82,760      14,728       16,307    17.8     21.4     8.0           6.7   20.3     20.6     19.4    19.4
   Tata Chem                110,853      115,367      21,541       22,912    32.2     36.3     9.7           8.6   12.6     12.5     15.5    16.5
  Source: Emkay Research


                                                   Implied growth for H2FY12 encouraging for Coromandel and Chambal

                                                   Implied PAT growth for H2FY12, based on our FY12 est suggest strong growth for
                                                   Coromandel at 86% yoy followed by 64% for Chambal. Though Coromandel’s growth is
                                                   driven on account of low base, Chambal is likely to gain from higher IPP prices of urea in
                                                   Q4FY12 results. Amongst other UPL is also likely to post 40% growth at PAT.

                                                    H1 FY12 YoY                        Revenues                    EBITDA                   PAT
                                                    Companies
                                                    Chambal Fert                             12%                      -9%                   -12%
                                                    Coromandel Fert                          9%                       18%                   20%
                                                    Deepak Fert                              37%                      27%                   30%
                                                    GNFC                                     42%                     145%                   197%
                                                    GSFC                                     4%                       15%                   24%
                                                    Rallis India                             29%                      27%                   11%
                                                    United Phosphorus                        33%                      28%                    1%
                                                    Source: Emkay Research

                                                    H2 FY12 YoY                        Revenues                    EBITDA                   PAT
                                                    Companies
                                                    Chambal Fert                             7%                       32%                   64%
                                                    Coromandel Fert                          63%                      82%                   86%
                                                    Deepak Fert                              30%                      20%                   17%
                                                    GNFC                                     4%                       29%                    9%
                                                    GSFC                                     6%                      -26%                   -20%
                                                    Rallis India                             31%                      36%                   32%
                                                    United Phosphorus                        30%                      36%                   40%
                                                    Source: Emkay Research


                                                   Complex fertiliser sales down by 19% owing to lower imports while urea
                                                   picks up by 11% yoy
                                                   Complex fertiliser has witnessed 19% drop in sales volumes in H1FY12 to 12.5 mn mt on
                                                   account of 31% drop in fertiliser imports (imported DAP, MOP and imported NPK) to 4.7
                                                   mn. On the other hand urea sales increased by 11% to 14 mn mt. Higher urea sales can
                                                   also be attributed to significantly high price of complex fertiliser since DAP was sold at
                                                   average prices of Rs 16500 / mt in Q2FY12 vs Rs 5310 / mt for Urea. Farmers paid Rs
                                                   10,200 / mt for DAP and Rs 5310 / mt for urea previous year in the same quarter. However
                                                   the lower fertiliser sales volume of complex fertiliser was also affected due to lower
                                                   availability of fertiliser in global market, primarily MOP, we expect that demand pressure in
                                                   complex to continue in near future due to significantly high prices of complex fertiliser



Emkay Research         25 October 2011                                                                                                             3
                                   Fertiliser                                                                              Sector Update

                                   prices. However drop in demand is likely to be compensated by lower imports and domestic
                                   manufacturing may continue to remain intact.

                                   Fertiliser sales volumes- mt
                                                                                            H1FY11              H1FY12           H1FY12
                                    Imported DAP                                          4,442,180            2,848,575            -36%
                                    MoP                                                   1,962,941             702,326             -64%
                                    Imported NPK                                            468,192            1,220,297           161%
                                    Indigenous Dap                                        1,926,969            1,935,936               0%
                                    Indigenous NPK                                        4,261,197            3,939,464             -8%
                                    SSP                                                   1,767,247            1,488,321            -16%
                                    Others                                                  517,809             339,623             -34%
                                    Total decontrolled                                   15,346,535           12,474,542            -19%
                                    Urea                                                 12,603,899           13,965,558            11%
                                    Source: Fertiliser Ministry, Emkay Research



                                   NBS saved government subsidy by ~30% and help protect companies’
                                   margins
                                   Complex fertiliser players have witnessed stable margins despite severe input cost
                                   pressure along with currency depreciation which have pushed the raw material cost further.
                                   Thanks to NBS which has saved the government from any further increase in fertiliser
                                   subsidy. We estimate that under the old policy regime government subsidy would have
                                   gone up by 30% (~Rs 206 bn with current exchange rates). It has also helped the
                                   companies to protect their margins by passing on the incremental cost to the farmers.

                                   Chemical prices remain strong benefiting the producers from higher spreads
                                   Emkay Chemical index indicates that the prices of most of the chemicals remain strong with
                                   Q2FY12 average prices been higher by 21% yoy and 3% qoq. Spread remains encouraging
                                   for Caprolactam and Nylon thus benefiting GSFC. Though companies have been facing
                                   input cost pressure, mainly due to higher energy cost, however they have been able to pass
                                   on the cost push to the end consumers helping them maintain margins.


                                    Chemical index

                                     Index                                                                                       % YoY
                                     140                                                                                          40%
                                                                                                                                  30%
                                     130
                                                                                                                                  20%
                                     120                                                                                          10%
                                     110                                                                                          0%
                                                                                                                                  -10%
                                     100
                                                                                                                                  -20%
                                       Jan-08      Jun-08 Nov-08 Apr-09           Sep-09 Feb-10   Jul-10   Dec-10 May-11
                                      90                                                                                          -30%
                                                                         Emkay Chemical Index         % YoY

                                    Source: Emkay Research


                                   Companies cautious about their margins and demand, however companies
                                   with diversified product portfolio to continue to protect their margins
                                   Companies like GNFC and Deepak fertiliser have cautioned about margin pressure if raw
                                   material cost escalates further. Companies have also outlined demand pressure if global
                                   slowdown continues however there has been no slack in demand so far now. We also
                                   believe that companies with basket of product products like Deepak Fertiliser continue to
                                   protect their margins through diversified product portfolio.




Emkay Research   25 October 2011                                                                                                           4
                                                  Fertiliser                                                                   Sector Update

                                                 Q2FY12 performance

                                                 Chambal Fertilisers

                                                  ¡      Chambal’s Q2FY12 results were broadly in line with APAT of 841 mn, (-14%yoy)
                                                         despite disappointment in shipping (EBIT loss of Rs 49 mn) and textiles (loss of Rs 90
                                                         mn)

                                                  ¡      Manufactured fertiliser and trading business posted encouraging results with EBIT
                                                         margins of 16.8% and 6% respectively and expected to remain robust

                                                  ¡      Withdrawal of proposed demerger of shipping is the biggest disappointment and is
                                                         expected to put pressure on company’s earnings due to adverse business
                                                         environment

                                                  ¡      Revise est to Rs 9.0/8.9 (from Rs 8.7/9.2) for FY12/FY13 resp. Trim target multiple
                                                         and reduce target price to Rs 98 (from Rs 110) with downgrade to Accumulate (from
                                                         BUY)


   Chambal Fertilisers                                                   Sep'11       Jun'11      Sep'10     YoY chg     QoQ chg       Sep-11E
   CMP(Rs)                       88         Net Sales (Rs mn)            16,423       11,644       15,453        6.3%       41.0%        13711
   Mkt Cap (Rs bn)               37         EBITDA (Rs mn)                 2,045       1,796        2,253       -9.2%       13.9%         2011
   Reco                         Accu        EBITDA Margin (%)               12.5        15.4         14.6    -212 bps     -297 bps       14.7%
   Target Price (Rs)             98         PAT (Rs mn)                     841          729         982       -14.4%       15.4%          884
   % Upside                     11%         EPS (Rs)                         2.0         1.8          2.4      -14.4%       15.4%           2.1
   Source: Emkay Research




                                                 Coromandel International

                                                  ¡      Q2FY12 APAT of Rs 2.6 bn, +17%yoy, was ahead of est driven by higher than
                                                         estimated EBITDA margins at 13.8% (85bps yoy / 130bps qoq)

                                                  ¡      Revenue growth of 5.7% yoy to Rs 27.2 bn despite 12% decline in volumes (emkay
                                                         est) is led by higher fertiliser prices which were up by 30-40% yoy

                                                  ¡      Volume growth to pick up in H2FY12 due to improved availability of phos acid from
                                                         Tunisia and increased imports of MOP to facilitate higher NPK production

                                                  ¡      Announced bonus debenture of Rs 15 / - for every one share, Maintain estimates of
                                                         Rs 26.4/Rs 32.3 for FY12 & FY13 resp and maintain our BUY reco on the stock


  Coromandel International                                             Sep'11       Jun'11      Sep'10      YoY chg     QoQ chg      Sep-11E
  CMP(Rs)                          333     Net Sales (Rs mn)           27,241       17,665       25,761        5.7%       54.2%        24795
  Mkt Cap (Rs bn)                     94   EBITDA (Rs mn)                3,764       2,203        3,340       12.7%       70.8%         2975
  Reco                            Buy      EBITDA Margin (%)              13.8        12.5         13.0      85 bps      135 bps       12.0%
  Target Price (Rs)                435     PAT (Rs mn)                   2,600       1,387        2,226       16.8%       87.5%         1960
  % Upside                        31%      EPS (Rs)                        9.3         4.9          7.9       16.8%       87.5%           7.0
  Source: Emkay Research




Emkay Research         25 October 2011                                                                                                          5
                                                Fertiliser                                                                     Sector Update

                                               Deepak Fertilisers

                                                ¡    Q2FY12 results were in line with estimates. Revenues Rs 5.8 bn, +39%yoy, was
                                                     above est due to strong fertiliser revenues but APAT Rs 619 mn, +38%yoy, was
                                                     broadly in line with est

                                                ¡    TAN demand remained sluggish due to Telangana stir & monsoon related floods.
                                                     Margin pressures also intensified as company was unable to push cost related
                                                     increases

                                                ¡    Strong results in fertiliser were driven by higher trading of specialty fertiliser resulting
                                                     in fertiliser contribution to EBIT in H1FY12 increasing to 25% from 18% previous year

                                                ¡    Driven by strong performance of fertiliser, we raised our EPS to Rs 26.7/30.6
                                                     (previous Rs 25.2/27.9) for FY12/13, maintain target of Rs 250 and reiterate BUY

   Deepak Fertilisers                                                 Sep'11        Jun'11        Sep'10       YoY chg    QoQ chg       Sep-11E
   CMP(Rs)                        165     Net Sales (Rs mn)             5,772        4,739         4,141         39.4%       21.8%          4566
   Mkt Cap (Rs bn)                15      EBITDA (Rs mn)                1,059        1,129              800      32.4%       -6.2%          1091
   Reco                           Buy     EBITDA Margin (%)              18.3          23.8          19.3       -96 bps    -548 bps       23.9%
   Target Price (Rs)              250     PAT (Rs mn)                       619           639           448      38.2%       -3.2%              576
   % Upside                      51%      EPS (Rs)                           7.0           7.2           5.1     38.2%       -3.2%              6.5
   Source: Emkay Research




                                               GNFC

                                                ¡    Results were in line at the EBITDA level however higher other income and lower
                                                     interest costs boosted APAT. Revenues grew by 27% yoy to Rs 10.2bn; PAT of Rs
                                                     808mn, 27% yoy

                                                ¡    Fertiliser segment reported revenues of Rs 6bn, 28% yoy higher than est driven by
                                                     higher volumes of 263,000mt against est of 248,000mt. Margins were in line at 2.9%

                                                ¡    Chemical reported revenues of Rs 4bn, 26% yoy higher than est. Margins came in at
                                                     24% (-510bps yoy/ 700bps qoq). WNA- II plant commenced operations in July

                                                ¡    Maintain FY12E/FY13E estimates of Rs 19.3/Rs 25.7 with target price of Rs 135

   GNFC                                                             Sep'11         Jun'11        Sep'10        YoY chg    QoQ chg      Sep-11E
   CMP(Rs)                        91      Net Sales (Rs mn)          10,206        6,442         8,019          27.3%      58.4%         8135
   Mkt Cap (Rs bn)                14      EBITDA (Rs mn)             1,479          925          1,153          28.3%      59.9%         1419
   Reco                           Buy     EBITDA Margin (%)           14.5          14.4          14.4         12 bps      13 bps       17.4%
   Target Price (Rs)              135     PAT (Rs mn)                 808           417           639           26.6%      94.1%         713
   % Upside                      48%      EPS (Rs)                    5.2           2.7           4.1           26.6%      94.1%          4.6
   Source: Emkay Research




Emkay Research          25 October 2011                                                                                                          6
                                               Fertiliser                                                             Sector Update

                                              GSFC

                                               ¡    GSFC continued strong show with Q2FY12 PAT at Rs 2.12 bn (+3% yoy on strong
                                                    base) above our est driven by strong performance of fertiliser and chemicals

                                               ¡    Fertiliser EBIT margins at 15% (est 11%) and chemical margins at 34.3% (est 35%),
                                                    driven by higher spread in caprolactam, supported PAT growth despite lower
                                                    revenues

                                               ¡    Despite lower than est revenues, strong performance below the EBITDA line driven
                                                    by lower than est interest, depreciation and higher other income boosted PAT

                                               ¡    With 48% of cmp in cash and equivalents and FY12 EV/EBITDA of 2.0x, P/E of 5x,
                                                    stock offers attractive investment opportunity. Re-iterate BUY with TP of Rs 530


   GSFC                                                            Sep'11      Jun'11      Sep'10     YoY chg    QoQ chg      Sep-11E
   CMP(Rs)                       461     Net Sales (Rs mn)          12,641      12,077      13,007       -2.8%       4.7%       14410
   Mkt Cap (Rs bn)               37      EBITDA (Rs mn)              3,031       2,738       3,172       -4.4%      10.7%        2870
   Reco                          Buy     EBITDA Margin (%)            24.0        22.7        24.4     -41 bps     131 bps      19.9%
   Target Price (Rs)             530     PAT (Rs mn)                 2,128       1,773       2,070       2.8%       20.0%        1782
   % Upside                     15%      EPS (Rs)                     26.7        22.2        26.0       2.8%       20.0%         22.4
   Source: Emkay Research


                                              Rallis India

                                               ¡    Q2FY12 PAT at Rs 585mn (flat yoy) were below est due to operating losses at
                                                    Metahelix and lower standalone margins

                                               ¡    Cons revenues grew by 19% yoy to Rs 4.39 bn with EBITDA margins of 22.2% vs
                                                    24% previous year. Lower pest occurrence and delayed sowing affected revenue
                                                    growth

                                               ¡    Thrust on revenue growth and aggressive products launch to put pressure on working
                                                    capital resulting in higher interest

                                               ¡    Downgrade EPS estimates to Rs 8/10.9 (previous Rs 8.9/11.6) for FY12/13. Maintain
                                                    BUY with revised target price of Rs 197 (previous Rs 209)


   Rallis India                                                    Sep'11      Jun'11      Sep'10     YoY chg    QoQ chg      Sep-11E
   CMP(Rs)                       160     Net Sales (Rs mn)           4,395       2,975       3,680      19.4%       47.7%        4710
   Mkt Cap (Rs bn)               31      EBITDA (Rs mn)               975         435         883       10.4%      124.2%        1130
   Reco                          Buy     EBITDA Margin (%)            22.2        14.6        24.0    -182 bps     756 bps      24.0%
   Target Price (Rs)             197     PAT (Rs mn)                  585         231         587        -0.4%     153.1%         719
   % Upside                     23%      EPS (Rs)                      3.0         1.2         3.0       -0.4%     153.1%          3.7
   Source: Emkay Research




Emkay Research         25 October 2011                                                                                                7
                                               Fertiliser                                                             Sector Update

                                              United Phosphorus

                                               ¡    Q2FY12 results were above est driven by strong revenue growth of 41% to Rs 17.8
                                                    bn. APAT at Rs 1.6bn, +22% yoy were ahead of our est

                                               ¡    RoW (revenue growth of 105%yoy) & India (25% yoy) supported strong sales. Overall
                                                    volume growth of 32% was a positive surprise

                                               ¡    Management upped revenue guidance to 30-35% (previous 25-30%) while EBITDA
                                                    margins to come at 19-20% (from 20-21%)

                                               ¡    We have adjusted revenue est however maintain FY12/FY13 EPS est at Rs 17.8 /
                                                    21.4 and reiterate our BUY recommendation on the stock with price target of Rs 215


   United Phosphorus                                               Sep'11      Jun'11      Sep'10     YoY chg    QoQ chg      Sep-11E
   CMP(Rs)                         142   Net Sales (Rs mn)          17,757      18,621      12,569      41.3%       -4.6%       15742
   Mkt Cap (Rs bn)                  66   EBITDA (Rs mn)              3,255       3,449       2,326      39.9%       -5.6%        2991
   Reco                            Buy   EBITDA Margin (%)            18.3        18.5        18.5     -17 bps     -19 bps      19.0%
   Target Price (Rs)               215   PAT (Rs mn)                 1,592       1,682       1,307      21.9%       -5.4%        1433
   % Upside                        51%   EPS (Rs)                      3.6         3.6         3.0      21.9%       -0.6%          3.3
   Source: Emkay Research




Emkay Research         25 October 2011                                                                                                8
                                                                         Fertiliser                                                                                                           Sector Update




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  We and our affiliates, officers, directors, and employees world wide, including persons involved in the preparation or issuance of this material may; (a) from time to time, have long or short positions in,
  and buy or sell the securities thereof, of company (ies) mentioned herein or (b) be engaged in any other transaction involving such securities and earn brokerage or other compensation or act as a
  market maker in the financial instruments of the company (ies) discussed herein or may perform or seek to perform investment banking services for such company(ies)or act as advisor or lender /
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  completeness cannot be guaranteed.



Emkay Research                  25 October 2011                                                                                                                                   www.emkayglobal.com
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