“For 4QFY2012, GIPCL posted better than estimated performance on account of healthy Plant Availability Factor (PAF) and Plant Load Factor (PLF) reported by the 250MW SLPP station II. PAF and PLF for SLPP station II stood at 93.2% and 90.1% respectively for the quarter. For FY2012 as a whole PAF and PLF for SLPP station II stood at 73% and 66% respectively. This along with higher PAF reported by Gas-based Vadodara Station I and II boosted the OPM’s, which was higher by 554bp and 2,026bp on yoy and qoq basis respectively. We maintain our Buy recommendation on the stock.”
“For 4QFY2012 GIPCL posted a 15.8% yoy decline in net revenue to Rs263cr, on account of shut down of 125MW SLPP Unit-I due to damaged rotor. On account of this, 250MW SLPP Station I (Comprising Unit-I & II of 125MW each) posted low PAF and PLF of 48.2% and 47.8% respectively, with generation down by 42% yoy to 260.9MU. Vadodara station I reported a robust PAF of 97.3% and 97.7% for the quarter and year respectively. While Vadodara station II reported a PAF of 81.7% for the quarter. However, PLF for the plant stood at a low 19.6% due to low off-take.”
“GIPCL is well placed in terms of fuel security, with the entire fuel requirement of 500MW SLPP stations I and II met from captive lignite mines. Further, power generated by the company has assured offtake through PPAs signed under the cost-plus model, ensuring RoE of 14% (excl. generation linked incentives) at 75% and 80% PAF for lignite and gas-based plants. At the CMP of Rs59, the stock is trading attractively at 0.5x FY2014 P/BV. We have assigned a P/BV of 0.7x on FY2014 book value to arrive at a target price of Rs77. We maintain our Buy recommendation on the stock,” says Angel Broking research report.
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