Emkay Global Financial Services is bullish on United Phosphorous and has recommended accumulate rating on the stock with a target of Rs 172 in its July 20, 2012 research report.
"United Phosphorus consol revenues increased by 19% yoy to Rs 22.1bn (higher than est) primarily driven by higher than estimated revenues from India. Exchange gain contributed 11% to growth while pricing increased by 5% with the balance 4% being contributed by volumes. Organic growth remains muted. Indian revenues grew by 16% yoy (driven by both price and volumes) while North American revenues grew by 32% yoy (mainly on account of currency depreciation). Europe and RoW market grew by 12%-15%."
"Though gross margins improved by 300bps yoy to 38%, EBITDA margins at 17.5% was below est. Seasonally weak quarter in Brazil pulled margins down however management is confident of aligning margins in Brazil market in line with companys margins by FY13- 14 through various synergies. UPLs PAT of Rs 2.2bn, +31% yoy,