Buy Mangalam Cement; target of Rs 286: Anand Rathi

Anand Rathi 's research report on Mangalam Cement

Greater demand and stable prices mitigated input cost pressures, resulting in Mangalam’s Q2 revenue/EBITDA rising 11%/24% y/y. Its WHRS expansion completed in Aug’20 and is expected to offset rising pet-coke costs. Flyash availability at Aligarh is expected to be resolved in Q4. With already 90% utilisation in clinker, the ongoing expansion at Morak will allow for greater volumes.

Outlook

We maintain a Buy, with a target of Rs286 (earlier Rs267) 5x FY22e EV/EBITDA.