Motilal Oswal Securities has maintained `Neutral` on BGR Energy with a price target of Rs 296 as against the current market price (CMP) of Rs 284 in its report dated May 31, 2012.
BGR Energy reported 4QFY12 operating performance in-line with estimates, with revenues at Rs 11.3 billion (down 22% YoY) and EBIDTA margins at 11.9% (up 46bp YoY). PAT at Rs 672 million (down 32% YoY) was above our estimates of Rs 551 million given lower interest costs (at Rs 411 million v/s est Rs 482 million) and lower tax rates (at 29.6% v/s est 36.3%).
It have upgraded our FY13 estimate by 5% in light of increased margin assumption and have cut our FY14 earnings estimate by 22% to factor in scrapping of Rajasthan SEB`s order worth Rs 65 billion and likely execution delays.
It maintains Neutral with a target price of Rs 296, based on 10x FY14E earnings.
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