Emkay Research has maintained its buy rating on Tamil Nadu Newsprint and Papers with a price target of Rs 151 in its May 31, 2008 research report. "Tamilnadu Newsprint (TNPL) reported its Q4FY08 results which were in line with our expectations. Company reported net revenues of Rs 2.5 billion which increased by 10.9% YoY / 6.4% QoQ. EBITDA margins declined by 180 bps to 21.4 due to rise in ower and fuel cost, which increased by 160 bps to 23% as a percentage of sales. Adjusted PAT increased by 11.3% YoY / 14.5% QoQ to Rs 275 million. EPS for the quarter was Rs 4.0 as against 3.6 in Q4FY07. For FY08 net revenues were up by 9.8% YoY to Rs 9.4 billion. Adjusted PAT increased by 21.8 % YoY to Rs 1.09 billion resulting in an EPS of Rs 15.6."
"Company has completed its capex plan to increase pulp capacity by Mar’08 and is expected to benefit from next quarter. Realisations for paper are also expected to increase due to excise duty benefit and increase in paper prices. We maintain our positive outlook on the company on account of favourable industry dynamics and maintain our BUY recommendation on the stock with a price target of Rs 151, an upside of 51%," says Emkay's research report.
"Company has completed its capex plan to increase pulp capacity by Mar’08 and is expected to benefit from next quarter. Realisations for paper are also expected to increase due to excise duty benefit and increase in paper prices. We maintain our positive outlook on the company on account of favourable industry dynamics and maintain our BUY recommendation on the stock with a price target of Rs 151, an upside of 51%," says Emkay's research report.
