Power Cement Limited (POWER): Tweaking estimates – ‘Buy’ maintained with TP of Rs16 – By JS Research

<ul><li><span style="font-family:Arial, Helvetica, sans-serif;font-size:medium;">We update our investment case for Power Cement Limited (POWER) to incorporate recent developments such as rights share offering and update in our long term industry assumptions.</span></li><li><span style="font-family:Arial, Helvetica, sans-serif;font-size:medium;">We forecast 27% lower earnings as compared to our previous estimates for FY17E due to (1) subdued sales in 4QFY17 mainly due to Eid Holidays and (2) impact of Super Tax announced in FY18 federal budget.</span></li><li><span style="font-family:Arial, Helvetica, sans-serif;font-size:medium;">We also tweak our long-term earnings estimates where we incorporate 10% tax credit on company&rsquo;s investment, which we expect to be booked during FY19 and FY20 period.</span></li><li><span style="font-f...