Value Call- KEL Aug 13'2015

Value Call August 13, 2015

Electricity

TSL Rese

arch

K‐Electric Limited Best exposure in the revamping energy sector We initiate coverage on Pakistan’s only vertically integrated power utility, K‐Electric (KEL), with

‘BUY’ rating. KEL offers a unique blend of opportunities across the power sector chain, comprising

of i) Generation, ii) Transmission and iii) Distribution. Moreover, the company’s monopolistic posi‐

tion in serve Pakistan’s largest city and industrial hub, Karachi, places KEL in an excellent position

to benefit from upcoming economic upturn led by reforms in energy sector.

We estimate earnings to grow at a 27% CAGR (during FY14‐19), stemming from 1) reducing T&D

losses, 2) rising metropolis electricity needs, 3) improving bill recoveries, 4) absence of tax pay‐

ments, 5) partial immunity to circular debt and 6) company’s ambitious capex plans to enhance

capacities & efficiencies. Over the negative side, sponsors are planning to handover management

control to new strategic investor by 2016, which might pinpoint question marks on the compe‐

tency of the new management.

Our Free Cash Flows based TP of PKR11.2/share depicts 37% price upside while the stock is trading

at an attractive FY16F PE of 6.3x vs. average PE of 8.8x for TSL IPP Universe. Such low price multi‐

ple is unjustified, given earnings CAGR of 27% for KEL (FY14‐19) vs. 10% for TSL IPP Universe.

T&D losses and cash recoveries to pick pace in FY16: In 9MFY15, KEL has been able to reduce

T&D losses by 1.95pps to 23.35% from 25.3% in FY14. We foresee T&D losses to further reduce to

15.9% by FY20, on the back of ongoing ’Operation Burq’ against electricity theft and other loss

minimizing measures taken by KEL. The company is on the path to make major investments (in TP

‐1000 project, Aerially Bundled Cables, replacement of electro‐mechanical meters with electro‐

static meters & Smart Grids) in power transmission and distribution system. Recently, it has

awarded a contract of USD400mn (under TP‐1000 project) to Siemens and Shanghai Electric for

execution of major transmission system up gradation.

Rising generation fleet efficiency to help in profits: As multi‐year tariff (MYT) allows KEL to re‐

tain any fuel savings, the company has taken many initiatives to improve its generation capacity/

efficiency from 30.4% in FY09 to 37.3% in 9MFY15. Conversion of its open cycle power plants

(KGTPS and SGTPS) to combined cycle by installing steam turbines would increase fuel efficiency

and overall generation. Now, KEL is going to convert 2 units of 420MW (out of 6 units of BQPS 1)

to coal by leasing them out to a newly incorporated company k‐energy.

Past tax losses to protect from future tax payments: Long history of making loss is now acting as

a boon for KEL as it would be utilized to offset tax incurrence in coming years. This would bode

well for the cash flows of the company at time of rising profits and capex requirements.

Immunity to circular debt: KEL is different from conventional IPPs in Pakistan in the sense that it

has partial immunity to circular debt. KEL can cancel out receivables (subsidy from the Govt. and

electricity bill receivables from SOEs) against the payments (to SSGC and NTDC).

’MYT’ renewal is an uncertainty: The company operates under a ‘Multi Year Tariff’ framework

under which the company’s tariff is set as per agreed benchmarks at the start of each financial

year. This agreement is set to be renegotiated in FY16, may be with the tough clauses.

Claw‐back Mechanism limits gains: Under KEL’s MYT tariff, the company has to return a portion

of its profits (if EBIT is above 12% of average Regulatory Assets) to consumers in the form of lower

tariffs. These amounts may become more significant given rising profitability. For next 5 years, this amount is likely to remain in the range of PKR1.4‐5.5bn (PKR0.05‐0.20 per share), which is incorpo‐

rated in our projections.

Please refer to the last page for Analyst Certification and other important disclosures.

Usman Riaz AC Research Analyst [email protected] Direct: +92‐21‐35216403

Syed Khurram Mohiuddin Research Associate [email protected]

Continued on page 2

KEL PA BUY

Stock price 8.2

Target Price (Dec‐15) 11.2

Upside/ (downside) 37%

Outstanding shares (m) 27,615.2

Market Cap (PKRbn) 225.6

Free float 10%

3M Avg. daily value traded (PKRm) 192.0

3M Avg. daily volume (m) 26.8

3M High 8.9

3M Low 7.2

Key Financials PKRbn

Year end FY13A FY14A FY15F FY16F

Total Revenue 189 195 189 212

Cost of sales 160 162 146 160

Gross Profit 29 32 43 52

Op. Profit 18 21 28 35

Finance Costs 14 11 10 6

PAT 7 13 25 36

Key metrics KEL

Year end FY13A FY14A FY15F FY16F

EPS 0.2 0.5 0.9 1.3

DPS* ‐ 0.5 ‐ 0.2

BVPS 2.6 3.2 3.4 4.5

P/Ex 33.1 17.5 9.1 6.3

P/BVx 3.2 2.6 2.4 1.8

Dividend Yield 0% 6% 0% 2%

Earnings growth 160% 89% 91% 44%

ROA 13% 18% 26% 28%

ROE 13% 18% 26% 28%

Debt/Equity 155% 109% 77% 51%

* FY14A Dividend was only declared for minority shareholders

Price Performance

6

7

8

9

10

11

12

Jul‐14

Aug‐14

Sep‐14

Oct‐14

Nov‐14

Dec‐14

Jan‐15

Feb‐15

Mar‐15

Apr‐15

May‐15

Jun‐15

Rel. KSE100 KEL

Value Call TSL Research

Initiating coverage with ‘BUY’ Earnings to grow at 27% CAGR in FY15‐19

In upcoming 5 years, we expect revenues of the company are set to rise by 8% CAGR (FY15‐19) to

PKR281.1bn, on the back of (i) modest 4% per annum growth in energy demand and (ii) successful

drive to reduce T&D losses/increase billable units. We foresee T&D losses to decline by an average

of 1.3% per annum to 15.9% by FY20. Just to mention, revenues of KEL are determined under

‘Multi Year Tariff’ agreement which improve when KEL beats inherent efficiency benchmarks. This

creates a strong incentive for the utility (KEL) to improve its operational performance. The same

can be witnessed where KEL has reduced its T&D losses to 23.4% in 9MFY15 from 35.9% in FY09,

while, efficiency of its power generation fleet has escalated to 37.3% in 9MFY15 from 30.6% in

FY09.

Moreover, reduction in T&D losses would expand the margins as revenue growth would outpace

COGS with higher units billed. As a result, gross margins of KEL would reach 24% in FY19 Vs. 17%

in FY14.

In addition, finance cost is likely to reduce in the coming periods amid lower interest rates while

strong cash flows would enable company to timely retire its debt. As on Jun’14, the company’s to‐

tal interest bearing debt stood at PKR77bn with debt‐equity ratio at 52%, which would reduce to

PKR35bn (14%) by FY19.

Furthermore, KEL has been booking tax reversals to account for deferred tax asset which has

jacked up it’s after tax earnings. It is pertinent to highlight that KEL has massive unutilized tax

losses and unabsorbed depreciation of PKR147bn and PKR128bn, respectively, which would be

utilized over next 5‐6 years. Incorporating all, we project PAT to grow at an annualized rate of 27%

CAGR in next 5 years and climb up to PKR43.2bn (EPS PKR1.57) by FY19.

We value KEL at PKR11.2 per share

We have valued KEL using Free Cash Flow methodology (in contrast to the DDM based valuation

usually done for power sector companies) since we assert that the company’s earnings growth

story is more compelling than dividend payouts. For this, we have used 16% cost of equity under

FCFE valuation method to calculate present value of cash flows of the company. Our Dec’15 TP of

PKR11.2/share offers a 37% upside from last closing price. The stock is trading at an enticing FY16F

PE of 6.3x as compared to 8.8x for TSL IPP Universe.

Taurus research is available on Bloomberg under TAUR & Capital IQ

Revenue Breakdown %

35%

34%

16%

15%

Industrial

Residential

GoP

Commercial

Customers by Type

5%

71%

2%

22%Industrial

Residential

GoP

Commercial

Net Sales/ Gross Profits (PKRbn)

0

20

40

60

80

0

50

100

150

200

250

300

350

FY12A

FY13A

FY14A

FY15F

FY16F

FY17F

FY18F

FY19F

FY20F

Net Sales

Gross Profits (RHS)

Net Profits (PKRbn)/ Gross Margins %

0%

5%

10%

15%

20%

25%

30%

0

10

20

30

40

50

60

FY12A

FY13A

FY14A

FY15F

FY16F

FY17F

FY18F

FY19F

FY20F

Net Profits Gross Margins (RHS)

Continued on page 3



KEL: Financial Snapshot

Income Statement PKRmn FY12A FY13A FY14A FY15F FY16F FY17F FY18F FY19F

Revenues 162,816 188,999 194,709 189,085 212,206 234,315 249,982 281,081

COGS 146,556 160,179 162,290 146,023 159,753 177,191 193,024 215,371

Gross Profit 16,260 28,820 32,419 43,062 52,453 57,125 56,958 65,710

Consumer Services & Admin. Exp. 12,218 15,302 16,247 17,625 19,780 21,841 23,301 26,200

Other Exp. 911 647 1,484 3,537 3,970 4,383 4,676 5,258

Other Income 7,140 5,090 6,163 6,045 6,784 8,489 9,848 11,725

Operating Profit 10,271 17,962 20,851 27,945 35,488 39,390 38,829 45,977

Finance Cost 7,702 13,960 11,275 9,690 5,875 5,036 4,139 3,225

PAT 2,620 6,826 12,888 24,676 35,613 37,354 36,190 43,252

EPS 0.09 0.25 0.47 0.89 1.29 1.35 1.31 1.57

DPS* ‐ 0.53 ‐ 0.19 0.41 0.39 0.47

*FY14 EPS was only announced for Minority shareholders

Balance Sheet PKRmn FY12A FY13A FY14A FY15F FY16F FY17F FY18F FY19F

Total Assets

Non Current Assets 170,610 165,332 173,144 189,435 196,277 199,576 201,743 203,288

Operating Fixed Assets 170,423 164,681 170,287 176,066 179,908 181,707 183,375 184,919

Others 187 651 2,857 13,369 16,369 17,869 18,369 18,369

Current Assets 101,668 113,547 133,171 137,210 154,791 180,369 206,002 240,398

Stores, Spares & Loose Tools 4,415 4,607 5,968 6,217 6,869 8,151 9,651 11,630

Trade Debts 49,381 62,844 75,704 85,486 90,260 102,771 114,849 131,377

Others 47,872 46,096 51,499 45,508 57,661 69,448 81,502 97,391

Total Assets 272,278 278,879 306,316 326,646 351,067 379,946 407,746 443,686

Total Equity & Liabilities

Equity 41,642 53,714 70,967 94,685 125,051 151,083 176,503 206,775

Share Capital 92,958 96,262 96,262 96,262 96,262 96,262 96,262 96,262

Other Reserves (51,316) (42,547) (25,294) (1,576) 28,790 54,821 80,241 110,514

Non Current Liabilites 84,308 64,505 60,114 66,276 59,553 55,447 51,365 46,965

Long Term Financing 43,183 24,902 18,231 23,888 17,166 13,059 8,978 4,578

Others 41,124 39,603 41,883 42,387 42,387 42,387 42,387 42,387

Current Liabilities 146,329 160,660 175,234 165,684 166,463 173,416 179,878 189,946

Current Maturity of Long Term Debt 14,217 14,965 9,928 5,404 6,847 4,781 4,429 4,400

Trade Payables 98,892 96,215 110,406 110,354 113,424 125,805 137,047 152,914

Short Term Borrowing 23,421 37,608 43,286 37,390 33,655 30,294 25,866 20,096

Others 9,799 11,872 11,613 12,536 12,536 12,536 12,536 12,536

Total Liabilites 230,636 225,165 235,348 231,960 226,016 228,863 231,243 236,911

Total Equity & Liabilities 272,278 278,879 306,316 326,646 351,067 379,946 407,746 443,686

Continued on page 4


T&D losses to reduce from 25.3% in FY14 to 15.9% in FY20

Over the past six years, KEL’s T&D losses have gone down from a high of 35.9% to a low of 23.4%.

The primary reasons behind the continuous drop in T&D losses are i) removal of illegal connec‐

tions, ii) revamping of a weak distribution network, iii) overhauling of transmission lines and iv)

recoveries based ‘load‐shedding’.

Just to mention, under the recoveries based load‐shedding, KEL has segregated the entire city into

smaller administrative zones called ‘Internal Business Centre (IBC)’. Wherein, high loss areas are

subject to greater ‘load‐shedding’ as opposed to medium loss areas and absence of load‐shedding

for low loss areas. Further, each IBC is responsible for performance of its service area and achieving

targets of bill recovery as well as T&D losses. In addition, the company also took bold steps to im‐

prove in‐house administrative efficiencies by laying off staff members who were involved in mal‐

practices.

Going forward, successful implementation of Operation Burq is likely to drag T&D losses further

down and, we have taken T&D losses for FY15 at 23% and gradual 1.3% reduction per annum

thereafter to 15.9% by FY20, in our estimations.

Moreover, KEL is likely to reap benefits on account of (i) efforts to reduce technical losses and (ii)

rise in load handling capacity under TP‐1000 project in upcoming tenure.

Future Projects in Transmission and Distribution:

Ongoing Operation Burq is a resounding success

Previously, prevention of electricity theft was extremely difficult due to a lack of effective legisla‐

tion. Thanks to the approval of ‘Electricity Act’, the company is now effectively pursuing electricity

thieves and has launched Operation Burq, under which joint raid of KEL and law enforcement per‐

sonnel is conducted against electricity thieves. During the first month of the operation, the distri‐

bution company has removed 84,000 illegal hook connections, having a combined weight of 28

tons. Plus, it has also resulted in significant recoveries of past outstanding dues.

TP‐1000 project

Under this project, KEL would set‐up additional 132kV grid stations and make investment in trans‐

mission network in order to; 1) reduce technical losses and 2) increase the load handling capacity of

KEL’s distribution network. As per a recent notice sent to KSE, the company has awarded contracts

worth USD400mn to Siemens (Germany and Pakistan) and Shanghai Electric for execution of a

major transmission improvement project. We expect this project to advance KEL’s earnings in

shape of higher billed units along with improved public image with the reduction in tripping and

technical faults.

Aerially Bundled Cables

The company also plans to install ‘Aerially Bundled Cables’ (ABC) which are overhead power lines

using several insulated phase conductors bundled tightly together, usually with a bare neutral con‐

ductor. These are more sturdy cables and less susceptible to theft, pilferage or technical fault

caused by adverse weather conditions. Installation of these would make electricity theft more diffi‐

cult and reduce electricity disruption caused by adverse weather conditions.

Smart Grid Project

Another project that the company plans to embark on is switching to ‘smart grids’. Rollout of this

technology would allow the company to monitor customer electricity usage and to disconnect con‐

nections, if needed be, without having physical presence on the ground. Management estimates

that it would make an initial investment of USD6mn to cover a customer base 10,000 then raise it

tenfold over the next 2 years.


Transmission & Distribution Losses (Historical)

15%

20%

25%

30%

35%

40%

FY09A

FY10A

FY11A

FY12A

FY13A

FY14A

Transmission & Distribution Losses (Forecasted)

15%16%17%18%19%20%21%22%23%24%

FY15F

FY16F

FY17F

FY18F

FY19F

FY20F

Units Sent Out Vs. Units Billed (GWh)

8,000

10,000

12,000

14,000

16,000

18,000

20,000

FY12A

FY13A

FY14A

FY15F

FY16F

FY17F

FY18F

FY19F

FY20F

Units Sent Out Units Billed

Continued on page 5


Rising generation fleet efficiency to help in profits As Multi‐Year Tariff (MYT) allows KEL to retain any fuel savings, the company has taken many ini‐

tiatives to raise its generation efficiency over the years. As a result, KEL has managed to boost the

weighted average fuel efficiency of its generation fleet to 37.3% in 9MFY15 from 30.6% in FY09 by

way of timely maintenance and investment, thereby reducing fuel losses.

At present, KEL’s own generation fleet consists of five power stations with total capacity of

1,827MW. Four plants use gas and HSD as primary fuel while the fifth unit (Bin Qasim Power Sta‐

tion 1) relies on Gas/FO as its primary fuel with an efficiency level of 32.5%. Though generation

from gas is relatively cheaper (results in lesser fuel losses), company has to run its plant (BQPS 1)

on FO which causes high fuel losses. Now, KEL would lease out two out of six units of BQPS 1 to a

newly created entity K‐Energy (led by the ’Titan Mining Group’ of Indonesia) which would convert

these units to coal. In addition, KEL’s future projects to convert its open cycle power plants to com‐

bined cycle by installing steam turbines would increase fuel efficiency and total units available for

sale to consumers.

Future Projects in power generation:

Closing Open Cycle of KGTPS and SGTPS

The company is on track to convert two more units of KGTPS and SGTPS (176MW combined de‐

pendable capacity), which are currently operating at 36% efficiency level, into combined cycle

which would allow 20MW higher electricity generation with the same amount of fuel, thus result‐

ing in fuel savings during upcoming quarters. We calculate incremental impact of PKR1.0‐1.5bn on

revenues for the additional 20MW.

420MW coal fired power plant to come online in 2018

KEL has signed an agreement with Titan Mining Group of Indonesia to lease out some of its exist‐

ing power stations to a newly established entity K‐energy. Titan Mining Group, as part of agree‐

ment, would convert the existing gas fired boilers plant to coal. Resultantly, the project would 1)

allow higher availability of power to be sold to consumers since gas shortages impeded full capac‐

ity utilization and 2) accretion in earnings due to lease payments from K‐Energy.


Generation Fleet Efficiency

29%30%31%32%33%34%35%36%37%38%

FY09A

FY10A

FY11A

FY12A

FY13A

FY14A

Power Generation Equipment

Bin Qasim Power Station 1 (BQPS 1) Korangi CCPP

Capacity 1,260 MW Capacity 247 MW

Gross Dependable Capacity 920 MW Gross Dependable Capacity 215 MW

Year 1983 ‐ 1997 Year 2008‐09

Fuel HFO/ Gas Fuel Gas

Efficiency 32.5% Efficiency 45.0%

Supplier Hitachi, Ansaldo ‐ Steam Turbines Supplier General Electric ‐ LM 6000 GT

Bin Qasim Power Station 2 CCPP (BQPS 2) GE Jenbacher SITE & Jenbancher Korangi

Capacity 560 MW Capacity 180 MW

Gross Dependable Capacity 517 MW Gross Dependable Capacity 176 MW

Year 2012 Year 2009

Fuel Gas Fuel Gas

Efficiency 45.5% Efficiency 36.0%

Supplier General Electric ‐ Frame 9E GT Supplier General Electric ‐ Gas Engines

Continued on page 6


Past losses to save from future tax expense KE has a history of making substantial tax losses as the company had made its first PAT in FY12

after a gap of 10 long years. Despite profits, the company has not commenced cash tax payments

as history of losses has resulted in huge available tax losses (PKR146.9bn as of FY14). Previously,

KEL did not record any deferred tax asset due to bleak chance of company’s taxable income turn‐

ing into profits. Now with the improved operations and replacement of Govt. subsidies into higher

tariff for consumers, KEL is likely to report taxable income in coming years. As a result, we expect

company to record deferred tax asset (PKR6bn) in FY16 which would decline in next year. Further,

large unabsorbed depreciation (PKR128bn as per company management) would further delay the

tax payments by the company. To account for this, we have not taken any tax payment in our pro‐

jections.

KEL is relatively immune to circular debt Unlike other players in Pakistan’s power space, KEL has a favorable position with regards to circu‐lar debt since some of its major suppliers are state owned entities. KEL purchases electricity (40%‐50% of total demand) from NTDC (National Transmission and Dispatch Company) and gas from SSGC to run its power stations. On the other side, subsidies from federal Govt. to keep consumer electricity tariff low and electricity bill due from Govt. organizations (KWSB, City Govt. etc.) are receivables from the Govt. side. KEL’s MYT allows the utility to settle receivables of KEL from Govt. with payable to the Govt. entities.

Debt re‐profiling and low interest rates to lift net earnings

As on Mar’15 accounts, the company carries significant leverage with total interest bearing debt amounting to PKR76bn (debt to equity ratio of 24%). Being a highly leveraged company, KEL prof‐its take effects of fluctuation in interest rates. As the current interest rate regime is likely to pro‐long, the company would fetch benefit from low interest rates. We calculate PKR595mn (PKR0.02/share) interest savings for every 1% decline in interest rates.

Moreover, the company has recently issued a PKR22bn Sukuk bond which would be used to re‐deem near‐term maturing loans (IFC, ADB and local syndicate) and to partially meet working capi‐tal needs. The recent Sukuk issue would also improve cash flow position as it has effectively de‐ferred the maturity of debt.


Debt/ Equity Ratio & Finance Costs (PKRbn)

0246810121416

0%10%20%30%40%50%60%70%80%

FY12A

FY13A

FY14A

FY15F

FY16F

FY17F

FY18F

FY19F

FY20F

Debt/ Equity Ratio Finance Costs (RHS)

Continued on page 7


Key Risks to investment:

Reduction in T&D losses

Reduction in T&D losses, along with rise in generation fleet efficiency, has been the most impor‐

tant driver of earnings growth for the company. In our model, we have estimated T&D losses to

reduce by an average of 1.3% per annum in the next five years. Any slowdown in the current T&D

efficiency drive could adversely affect our TP on the scrip.

Change in management/ Divestment by sponsors

KEL’s main sponsor is a private equity firm (Al Abraaj Group) which is planning to exit KEL after

significantly improving the operations of the company. There might be a slight possibility that the

new owners/management of KEL may not be able to make further reduction in T&D losses of the

company.

‘MYT’ Agreement slated for renewal in 2016

KEL’s MYT agreement is set to expire in FY16 and a new agreement would be inked in turn. There

are fears that Govt. may influence some stricter terms for KEL under the new agreement. How‐

ever, we rule out this possibility, since Govt. has planned to privatize other power distribution com‐

panies along with WAPDA’s thermal power stations. Any awful example set in dealing with KEL

would not only deteriorate profitability of KEL but would also discourage other potential investors.

About the Company

KEL is the only vertically integrated utility (generation, transmission & distribution) of Pakistan. It

has exclusive licensing rights to sell electricity to Karachi which is a metropolis of over 20 million

residents and one of the most populous cities in the world. The company serves an area of 6,500

sq. km and has a customer base of 2.5mn which includes industrial, commercial and domestic us‐

ers.

The company was formed in 1913 and is one of the oldest companies operational in Karachi. The

entity was nationalized in 1952 but re‐privatized on November 29, 2005 by selling it to a consor‐

tium, KES Power, led by Al Jomaih Group of Saudi Arabia. However, in 2008, Abraaj acquired a

controlling stake (50%) in KES Power (“KESP”) from Al Jomaih Group and National Industries

Group. At present, KES Power holds 66.4% shareholding in Karachi Electric (Formally known as

Karachi Electric Supply Company) whereas GoP holds 24.36% holding in KEL.

Ever since the takeover of Al Abraaj Group, KEL has seen a significant turnaround in its operations with the company coming out of losses and making its first profit after several years in FY12. The generation capacity has been enhanced by ~1,000 MW through a combination of new plants and the rehabilitation of worn‐out units. Recently, KES Power Limited sold some of its shares which have reduced its holding in the company to 66% from 69% previously. This increased the free float of the company to 10%.

At present, KE is operating with the generation capacity of 2,247MW while it purchases 650MW

from NTDC and 366MW from different IPPs. Over the transmission side, the power utility is han‐

dling 64 grid stations, 130 power transformers and 1,249KM of overhead and underground cable

network. With the customer base of 2.5mn, residential users contribute 1.85mn while 0.57mn con‐

nections are given to commercial entities. However, over the revenues side, domestic consumer

contributions remain at 33.6% while industries and commercial entities chip to 35.6% and 14.9%.

Remaining 15.9% is earned through billing to Govt. entities.


Shareholding Pattern

66%

24%

10%

KES Power

GoP

Others

Analyst Certification

The research analyst(s), denoted AC on the cover of this report, who exclusively reports to the research department head, primarily involved in the preparation, writing and publication of this report, certifies that (1) the views expressed in this report are unbiased and independent opinions of the Research Analyst which accurately reflect his/her personal views about all of the subject companies/securities and (2) no part of his/her compensa‐tion was, is or will be directly or indirectly related to the specific recommendations or views expressed in this report.

The research analyst or any of its close relatives do not have a financial interest in the securities of the subject company aggregating more than 1% of the value of the company and the research analyst or its close relative have neither served as a director/officer in the past 3 years nor received any compensation from the subject company in the past 12 months. The Research analyst or its close relatives have not traded in the subject secu‐rity in the past 7 days and will not trade in next 5 days.

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Frequently Used Acronyms

TP Target Price DDM Dividend Discount Model

FCF Free Cash Flows FCFE Free Cash Flows to Equity

FCFF Free Cash Flows to Firm PE Price to Earnings ratio

PBv Price to Book ratio BVPS Book Value per Share

EPS Earnings per Share DPS Dividend per Share

ROE Return on Equity ROA Return on Assets



Value Call- KEL Aug 13'2015

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Transcript of Value Call- KEL Aug 13'2015