Buy Deccan Cements; target of Rs 514: Anand Rathi

Anand Rathi's research report on Deccan Cements

A low base and firm prices in its operating region (AP/Telangana) led to Deccan Cements’ strong Q2 performance, it highest quarterly EBITDA. Labour shortages led to delay in completing its 6MW WHRS. Demand in H2 is expected to be hit by funding issues for government projects piling pressure on prices and stretching receivables days. Its net cash balance sheet and WHRS cost-savings expected will be positives.

Outlook

We retain our Buy on the stock, at a higher target of Rs514 (earlier Rs458).

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