Shree Cement an outperformer: P Lilladher

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Prabhudas Liladher has maintaiend outperformer rating on Shree Cement with target price of Rs 1113, implying upside potential of 20% in its May 08, 2008 report. "SCL's operating margins would be under stiff pressure going forward, led by falling realisation and sharp rise in fuel cost. However, absolute EBITDA would decline at a CAGR of 8% over FY08-10E, relatively lower as compared to the steep 26% rise in cost and 3% fall in realisation, on account of volume growth of 16%. At the current price, the stock trades at EV/EBITDA of 3.73x and 3.68x FY09E and FY10E, while on EV/tonne it trades at USD 81 and USD 64 FY09E and FY10E respectively. The stock looks attractive on the valuations as compared to its peers; we reiterate Outperformer rating on the stock with a price target of Rs 1,113.  

 

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