MUMBAI: In its results update note, Reliance Money has reiterated its ‘Buy’ call on Gujarat NRE Coke with a price target of Rs
83.

Gujarat NRE Coke posted net sales of Rs 3.8 bn (37% YoY cut), EBIDTA of Rs 0.64 billion (down by 88% (YoY)) and PAT of Rs 0.2 billion (decline by 96% (YoY)). The EBIDTA margins were crushed by 1295 bps on annual comparison.

“Effect of reduced raw material prices is expected to be reflected from Q310 onwards. We expect the EBIDTA margins to strengthen going forward. A sharp increase in EBIDTA margins due to correction in raw material prices and strengthening coke prices in domestic markets due reduction in cheap imports is expected in coming quarters.