Buy Deccan Cements; target of Rs 348: Anand Rathi

Anand Rathi 's research report on Deccan Cements

Against the backdrop of the lockdown, anaemic demand in Telangana/ AP and an exceptional `96m provision, Deccan Cements reported 20%/ 60% revenue/EBITDA decline and a `30bn loss. Also, the start of the WHRS was delayed by ~6 months due to no inter-regional movement. Demand and prices are expected to continue under pressure with the monsoon. With no major capex in the works, we expect a net debt-free company.

Outlook

We retain a Buy recommendation on the stock, at a higher target of `348 (earlier `289).

Deccan Cements 01072020-rathi