Profit

BSE Code: | NSE Code: | ISIN: | Sector:

NSE
113.60
Change Change %
-0.65 -0.57%

Updated:19 Sep, 2018, 15:56 PM IST

BSE
113.65
Change Change %
-0.60 -0.53%

Updated:19 Sep, 2018, 16:01 PM IST

Research Report Detail

Brokerage
Analyst
Report Date Call Price@Call Target Price
Stop Loss
Current Status Time Horizon
Edelweiss
N/A
31-07-2017 Buy 201.65 258.00
N/A
Closed Long (1Y)
31-07-2018

Edelweiss maintains buy on The India Cements

On the face of it, India Cement's Q1FY18 result appears disappointing. But, we highlight the brighter aspects: 1) volume stood flat YoY, despite decline in target markets (South down 7-8% YoY and West aroud 6%) as the company penetrated non-core markets. Expect better volumes in Q2FY18; 2) realisations rose 5% QoQ and stay unchanged currently; and 3) Q1FY18 had around INR120mn non-recurring cost impact related to ESOPs and meeting emission norms, implying adjusted EBITDA of INR1.97bn. What really inspires our conviction on the stock is the unchanged management commentary to: a) focus on debt repayment (as in past 2 years); b) undertake no expansions until utilisation reaches more than 85% (from around 70% in FY17); and c) focus on exiting non-core business (recently shut the infrastructure segment). Being optimistic on sector demand recovery, we see no risk to our estimates and maintain 'BUY' with a revised TP of INR258 (INR220 earlier).        

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