HSIE Results Daily: Trent, NHPC, Astral, Torrent Power, Emami, Fine Organic Industries, Gujarat State Petronet, Kalpataru Power Transmission, HG Infra, Sudarshan Chemical, JMC Projects, Deccan Cements
Gujarat State Petronet: Our ADD rating on Gujarat State Petronet with a TP of INR 255 is premised on (1) muted transmission volume over FY22-25E due to a high spot LNG price environment, driven by geopolitical issues, low global inventories, and pick-up in demand post reopening of economies and (2) limited upside triggers in the near term. Hence, we believe that, at present, the stock is fairly valued with an RoE of 13% in FY24E and a combined FCF of INR 25bn over FY23-25E. Kalpataru Power Transmission: Kalpataru Power (KPTL) reported revenue/EBITDA/APAT of INR 15.3/1.3/0.6bn, missing our estimates by 4.7/10/19%. The margin was impacted during the quarter due to higher input and raw material prices, elevated logistics costs, lower absorption of overheads, and closure of old projects. KPTL secured new orders worth INR 68.9bn in FYTD23, taking the order book (OB) to INR 188.6bn (~2.7x FY22 revenue, excluding L1 of INR 43bn). The standalone gross/net debt increased to INR 15.9/12.5bn as of Sep'22 vs. INR 13.5/9.3bn as of Jun'22. The pending cash flow to be realised from the Indore real estate project, for which OC was received in Jul'22, is INR 2.7-2.8bn (net basis INR 2bn), expected to be received in the next 10-12 months. This shall help deleverage the balance sheet further. Given strong order inflows, tight control on B/S and NWC, and guidance on the reduction of promoter pledges, owing to strong cash flows/land monetisation by the parent, we increase our valuation multiple from 12x to 14x. Given strong order inflows, we increase our...