GVK Power & Infrastructure Ltd. share price target

Outlook: Over the FY13-17 period GVK revenue and EBITDA have grown at a CAGR of 7.8% and 15.7% respectively. The EBITDA margins of the company are consistently improving and stands at 32.9% during FY17. The aviation industry is expected to become the third largest market by 2020, and the passenger traffic is expected to increase to 421mn. In the Union Budget, the government has allotted a budget of about $14.98 million has been allocated to Airports Authority of India, of which $4.29 million has been attributed towards Pakyong, Sikkim project. The government has planned to allocate a sum of $11.80 million to Directorate General of Civil...

Of the gasbased power plants, JP1/JP2 operated at 19%/24% PLFs. Since the AP government has exercised its option to buyout JP1, it will stop contributing to GVK's financialsfromFY17.GautamipowerplantcontinuedtooperateatzeroPLF....

All four units of Alaknanda HEP operated in this quarter (at 46% PLF) contributing topline/EBITDA/PATofRs2.2bn/1.9bn/227mn. AirportdivisionreporteddecentperformanceMumbaiairport(MIAL)reporting10%...

GVK Power's 1QFY16 results were ahead of expectations, primarily due to incremental powergenerationatJP1andGautamipowerplants. Topline at Rs 9.9bn (+40% yoy) was higher than our (Rs 8.6bn) and consensus (Rs 8.5bn)...