Feb 15, 2017 03:28 PM IST | Source: Moneycontrol.com
Buy Star Ferro & Cement; target of Rs 125: Centrum
Centrum is bullish on Star Ferro & Cement has recommended buy rating on the stock with a target price of Rs 125 in its research report dated February 09, 2017.
Centrum's research report on Star Ferro & Cement
Star Ferro & Cement’s (SFCL) consolidated EBITDA dipped 6% YoY hit by demonetisation, though the company moderated the pain through stringent cost control and on lower fuel costs. We expect SFCL’s profitability to recover during FY18/19 aided by its cost controls, stable fuel cost outlook, and cement price recovery in the north east region (NER).
The cement manufacturer is also shirking its debtor days, which, coupled with the clearance of subsidy backlogs by the central government can boost its cash-flow, and accelerate deleveraging. SFCL’s reverse-merger into Star Cement (by end of FY17) will simplify its corporate structure without any equity dilution. Maintain BUY with revised TP of Rs 125.
For all recommendations, click here
Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.