Firstcall Research is bullish on Madras Cement and has recommended buy rating on the stock with a target of Rs 273 in its February 14, 2013 research report.
“Madras Cements Ltd is the most popular high performance concrete cement brand in South India. It is a flagship company of the Ramco Group. The company is the fifth largest cement producer in the country and well-known business group of South India. The company also produces Ready Mix Concrete and Dry Mortar products, and operates one of the largest wind farms in the country. It is headquartered at Chennai.”
“The company’s net profit jumps to Rs.836.00 million against Rs.768.40 million in the corresponding quarter ending of previous year, an increase of 8.80%. Revenue for the quarter rose 21.62% to Rs.9049.50 million from Rs7440.70 millions, when compared with the prior year period. Reported earnings per share of the company stood at Rs.3.51 a share during the quarter, registering 8.80% increase over previous year period. Profit before interest, depreciation and tax is Rs.2365.30 millions as against Rs.2122.90 millions in the corresponding period of the previous year.”
“At the current market price of Rs.241.40, the stock P/E ratio is at 13.04 x FY13E and 11.61 x FY14E respectively. Earning per share (EPS) of the company for the earnings for FY13E and FY14E is seen at Rs.18.51 and Rs.20.79 respectively. Net Sales and PAT of the company are expected to grow at a CAGR of 21% and 33% over 2011 to 2014E respectively. On the basis of EV/EBITDA, the stock trades at 6.99 x for FY13E and 6.38 x for FY14E. Price to Book Value of the stock is expected to be at 2.31 x and 1.92 x respectively for FY13E and FY14E. We recommend ‘buy’ in this particular scrip with a target price of Rs.273 for medium to long term investment,” says Firstcall Research report. Institutional holding more than 40% in Indian cos 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. To read the full report click on the attachment
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