Arihant Capital's research report on Shree Digvijay Cement Company
basis due to lower base in same period last year amid repairing work undertaken in their plant last year. QoQ company delivered weak set of numbers. Although numbers were above our estimates on all front Net Revenue grew by 58.7% YoY, however declined by 0.5% QOQ to INR 1539 mn above our expectation of INR 1100 mn . Healthy topline growth on YOY basis was mainly due to rise in sales volume & realization Sales volume grew by 41.1% YoY, however remained flat Q0Q to 2.95 lakh tonnes above our expectation of 2.4 lakh tonnes. Realization /tonne grew by 12.4% YoY however declined by 0.2% QoQ to INR 5217 below our expectation of INR 5500.
Outlook
However margin are expected to remain in pressure in near term due to rising input cost. We value the stock at a EV/EBIDTA multiple of 6.5x to its FY23E EBIDTA of INR 1819 mn to arrive at a target price of INR 98 which gives potential upside of 18.2%% from current level. We maintain Accumulate rating on the stock.
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