CMP Rs458, Target Rs525, Upside 14.6%
± Net
sales rise 24.9% yoy on the back of higher transmission volumes, better
realizations for natural gas sales (APM gas price hike)
± OPM
falls 270bps yoy on account of more than doubling of subsidy burden and
sharp fall in EBIT margins for all segments except for natural gas
trading
± Increased gas supplies in the country lends strong revenue visibility
± Maintain our BUY rating with 9-month target price of Rs525
