Accumulate India Cement ,tgt Rs 205: Religare

Religare research has maintained accumulate rating on India Cements with target price of Rs 205, in its July 02, 2008 report. "We have revised our earnings estimates downwards for FY09E and FY10E to factor in the higher coal prices, higher staff costs, higher freight cost and lower other income as a result of lower cash available for investment. The company has also announced its capex plan for setting up a green field capacity of 4 million MT in the north. Equipment orders have been placed with the supplier and the preliminary works have started in this regard. The stock trades at a 1-year forward P/E multiple of 4.9x and on EV/EBITDA at 3.8x. It trades at an EV/tonne of USD 91 and USD 86 for FY09E and FY10E respectively. We maintain our Accumulate call and revise our target price to Rs 205 to factor in the earnings downgrade. At our target price, it will discount its 2-year forward earnings multiple by 8x" according to Religare report.  

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