CMP Rs1,789, Target Rs1,659, Downside 7.3%
± Revenues rise 32% yoy due to 23.9% yoy growth in volumes and 7% higher realizations
± Higher raw material costs owing to higher commodity prices lead to 275bps yoy fall in OPM to 11.3% (below expectations)
± Higher production from Uttaranchal plant results in lower effective tax rate
± Key concerns: R&D capabilities following exit of Honda, sustenance of margins
± Maintian Market Performer rating with a 9-month price target of Rs1,659 (P/E of13x FY13E EPS)
