Moneycontrol
Get App
Last Updated : May 24, 2017 05:01 PM IST | Source: Moneycontrol.com

Buy Deccan Cements; target of Rs 1468: HDFC Securities

HDFC Securities is bullish on Deccan Cements has recommended buy rating on the stock with a target price of Rs 1468 in its research report dated May 23, 2017.

 
 
live
  • bselive
  • nselive
Volume
Todays L/H
More

HDFC Securities' research report on Deccan Cements


Deccan Cements (DECM) delivered EBITDA/t of Rs 706/t (vs estimated: 683/t, -17.7% YoY, -11.8% QoQ), driven by flattish volumes (0.36 mT, 1.6% YoY). A sequential decline in realisations (Rs 4,163/t, 4.4% YoY, -6.9% QoQ) was offset largely by a decline in selling cost (Rs 1,466/t, 11.1% YoY, -19.6% QoQ) and flattish NSRs (Rs 2,702/t, 1.1% YoY, 1.9% QoQ).


Outlook


The deleveraging (large part of which has already played out) helps DECM navigate its volatile market with more comfort, as compared to peers. We believe that the company can plan its next expansion once cash levels become comfortable (say 30% equity contribution for a 1 mTPA kiln order). We maintain our BUY rating (TP: Rs 1,468, 6.5x EV/EBITDA, implied USD 60/t).


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.

First Published on May 24, 2017 05:01 pm
Loading...
Sections
Follow us on
Available On
PCI DSS Compliant