OUR STAFF REPORTER LAHORE - Nishat Mills Limited (NML) is scheduled to announce its FY11 results on Tuesday, September 06, 2011. According to analysts, sharp increase in cotton prices during FY11 led to a manifold impact on the prices of all the products in the textile chain. Presently, low-cost cotton inventories available with the company led to significant inventory gains. The company is expected to post PAT of Rs4,184m (EPS: Rs11.90), 44 percent higher YoY compared to PAT of Rs2,915m (EPS: PKR8.29) posted in the same period last year. For 4QFY11, analysts expect the company would post PAT of R702 million (EPS: Rs2.00), 36 percent lower YoY compared to PAT of Rs1,105 million (EPS: Rs3.14) posted in the same period last year. They also expect the company would announce a final dividend of Rs2.50/share in line with its historical trend. NML is trading at FY12E PER and PBV of 3.3x and 0.4x respectively with a DCF-based Dec11 Target Price of PKR76/share with an upside potential of 80 percent. However, it is pertinent to note that cotton inventories procured in the last season at around Rs8,000/maund levels may dampen the textile manufacturers margins in 1QFY12 to a great extent.