Anand Rathi has initiated coverage with buy rating on Sanghi Industries with price target of Rs 147, implying potential upside of 28 percent.
It is one of the lowest-cost producers of cement.
The research house said strong pricing and demand in western markets, along with savings would drive its EBITDA per tonne.
The company plans to double cement and power capacities over FY19-20.
Anand Rathi expects volume and revenue to grow at CAGR of 8 percent and 18 percent over FY17-20.
It expects utilisation in next two years to improve to 82 percent versus 70 percent.
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