FFBL Investment in WPP a diversification in right direction
Investment in WPP a diversification in right direction
FFBL is investing in wind power project with 50mw of 2 projects and FFBL’s share is 35% in each project. Financial close is expected in 2HFY11 and plants to come online in 2H13. Project cost is Rs11bn each and debt:equity ratio would be 75:25.. We expect cash payout for CY11 could fall to 80% keeping in view the financing share from FFBL in the project.
Valuation:
The stock is currently trading at CY11E P/E 6.32x and offers dividend yield of 15.64% along with capital gain of 7.7%, our TP for the stock is Rs47.54/ share.
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