FFC, FFBL and FATIMA earnings revised down

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  • fatimaLower than expected results of FFC, FFBL and FATIMA in 2Q2014 (primarily owing to lower than anticipated margins) has led us to revise down our EPS and DPS estimates for these companies by 0-6% for 2014E-15F.
  • In tandem we also revise down our Target Prices for FFC and FATIMA to Rs115 (vs Rs117 earlier) and Rs31 (vs Rs32 earlier) but keep Target Price for FFBL unchanged at Rs42.
  • Post 2Q2014, we revised down our earnings estimates of FFC, FFBL and FATIMA for 2014E-15F by 1-4%, 0-5% and 5-6%, respectively.
  • Consequently, we have also revised down our DPS estimates by 2-4%, 0-5% and 4-6%, respectively for these companies.

FFC, FFBL and FATIMA – ‘Hold’
Lower than expected results of FFC, FFBL and FATIMA in 2Q2014 (primarily owing to lower than anticipated margins) has led us to revise our EPS and DPS estimates for these companies by 0-6% for 2014E-15F. In tandem we also revise down our Target Prices for FFC and FATIMA to Rs115 (vs Rs117 earlier) and Rs31 (vs Rs32 earlier) but keep Target Price for FFBL unchanged at Rs42. We continue to maintain our ‘Hold’ recommendation on FFC and FFBL, whereas we downgrade FATIMA by one notch from ‘Buy’ to ‘Hold’ due to pending issue of imposition of GIDC on its feedstock gas.

EPS/DPS estimates revised down for 2014-15
Post 2Q2014, we have revise down our earnings estimates of FFC, FFBL and FATIMA for 2014E-15F by 1-4%, 0-5% and 5-6%, respectively. Consequently, we also revise down our DPS estimates by 2-4%, 0-5% and 4-6%, respectively for FFC, FFBL and FATIMA. Note that for FFBL, we have not revised 2015 earnings as we have kept our earlier margin assumption intact for the company as we believe DAP margins are likely to recover.

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