Buy Deccan Cements; target of Rs 670: Centrum Research

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26 Aug, 2025 12:21

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Centrum Research's research report on Deccan Cements

Deccan Cements (DCL) registered 19% YoY volume growth in Q4FY18, buoyed by sustained demand in AP/Telangana markets and demand recovery in other south markets. Still, aggressive pricing across south and elevated energy and freight costs continued to impact profitability - EBITDA/PAT down 17%/19% YoY. We continue to like DCL owing to (1) its strong balance sheet and (2) as we expect pricing to recover in south which should help the industry pass on the energy cost inflation.

Outlook
DCL is trading at extremely cheap valuations (13% AOCF/EV yield, 5x FY20E EBITDA and USD41/MT replacement cost).  We reiterate BUY with a revised TP of Rs670.
For all recommendations report, click here

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