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Buy Orient Cement; target of Rs 150: ICICI Direct

ICICI Direct is bullish on Orient Cement has recommended buy rating on the stock with a target price of Rs 150 in its research report dated August 02, 2022.

August 04, 2022 / 05:14 PM IST
The research firm ICICI Securities believes earnings of apparel brands and retail companies under their coverage may surprise positively from Q3FY22E as the likely demand recovery may result in better than expected margin performance. Some of the costs savings achieved during pandemic may sustain and coupled with high operating leverage may lead to higher than pre-covid margins from Q3FY22E.  Stocks like Trent, V-Mart and Aditya Birla Fashion and Retail are the preferred picks backed by their strong and consistent track record of execution.

The research firm ICICI Securities believes earnings of apparel brands and retail companies under their coverage may surprise positively from Q3FY22E as the likely demand recovery may result in better than expected margin performance. Some of the costs savings achieved during pandemic may sustain and coupled with high operating leverage may lead to higher than pre-covid margins from Q3FY22E.  Stocks like Trent, V-Mart and Aditya Birla Fashion and Retail are the preferred picks backed by their strong and consistent track record of execution.

 
 
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ICICI Direct's research report on Orient Cement


Orient Cement is a mid-sized (8.0 MT) cost-efficient player in the cement space. Its cement plants are located in Devapur, Telangana (3 MT integrated), Chittapur, Karnataka (3 MT integrated), Jalgaon, Maharashtra (2 MT grinding unit). The company derives revenues largely from Maharashtra (50%), Telangana, Karnataka and MP markets • It also has 101 MW power plant (95 MW CPP, 6 MW WHRS) that makes it selfsufficient in terms power requirements.


Outlook


Now with the strong b/s, the company is in a better position to withstand the cost challenges and grow the business beyond south. Maintain BUY. We value it at Rs 150 i.e.6.0x FY24E EV/EBITDA.


For all recommendations report, click here

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first published: Aug 4, 2022 05:14 pm
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