Edelweiss buy Rs 68. Edelweiss maintains ‘Buy’ rating on Usha Martin but downgrades the relative rating to Sector Performer from Sector Out performer. They cut their fair valuation from 125/share to 91/ shares. Usha Martin’s 30-MW captive power plant is shut down since last month due to a break down in the turbine. Management expects to restart operations post repairs in the next seven days. However since the company failed to procure adequate power from a local power plant in the interim Q3Y11 production could hit. Edelweiss however cuts the volume estimates from 547 kt to 519 kt for Fy11 and from 750 kt to 700 kt for Fy12. Thermal coal supply from UML’s captive mines has been affected since the Jharkhand government has allowed loading of only 15t per truck against 30t earlier. Hence there is an increased requirement of trucks, which is not fully met. As a result captive coal availability is expected to reduce from 120kt in Q2FY11 to 70-80 kt in Q3FY11.