Sembcorp Industries: CLSA maintains Sell with TP of $2.61 on uninspiring growth
- Stub valuations currently not expensive, trading below long historical 10x P/E average
- However, growth in utilities not expected to offset weakness from marine
- Utilities business to continue to face start-up costs in India and weak spark spread in Singapore
- India to account for 1/3 of group’s power capacity but long term PPA contract has yet to be secured for Sembcorp Gayatri (1,320 MW power plant in Andhra Pradesh)
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