Pain persists; Earnings to normalize from FY18E KSK Energy continued to report losses at Rs1,750mn in 2QFY16 (our expectation was net loss of Rs2,558mn) vs net loss of Rs828mn in 2QFY15 owing to 1) losses incurred by Mahanadi & Wardha Warora power plants, 2) higher interest charges (up 85% yoy) and, 3) high depreciation cost (up by 76%) due to commissioning of KSK Mahanadi power plant. KSK Energy's stock has lost 55% in last 12 months on account of de-allocation of coal mines to its Mahanadi plant (80% of portfolio). At CMP, stock is available at significant discount to its asset value. Thus,...