IIFL Institutional Equities has consolidated Advanta within UPL’s finances with effect from FY17. The brokerage has assumed a more conservative ramp-up in Advanta’s net profit than projected by the management. It cuts its Sep-16 target price to Rs540 from Rs590. It has assumed that the ramp-up will likely trigger cuts of 8%/9% to FY17/18ii EPS owing to c.19% equity dilution. The house has made a ‘ADD’ call for the stock.
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