CMP Rs1,287, Target Rs1,405, Upside 9.2%
± Total volumes for Q4 FY11 jumped by 17.2% yoy, led by 28.6% yoy surge in export volumes
± Realizations rose 5.4% yoy driven by price hikes implemented over the past few quarters
± OPM at 20.5% fall of 235bps yoy was better than expectations of 19.8%
± Adjusted for extraordinary items net Profit jumped 27% yoy to Rs6,758mn
± Uncertainty over continuity of DEPB benefits will keep the stock under pressure over the medium term. If the scheme is not extended EPS for FY12E and FY13E would be cut by 9% and 12% respectively
± We downgrade our rating on the stock from BUY to Market Performer with a revised 9-month price target of Rs1,405
