Moneycontrol
Last Updated : Jan 30, 2018 01:41 PM IST | Source: Moneycontrol.com

Buy Orient Cement, target Rs 179; JP's asset would help to raise capacity by 38%: Motilal Oswal

The broking house has put a buy call on the stock with a target at Rs 179 per share.

 
 
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Shares of Orient Cement declined 3.5 percent intraday Tuesday on the back of poor Q3 performance.

The company posted net loss at Rs 17.7 crore in December 2017 (Q3FY18) against loss of Rs 11.6 crore, in a year ago period.

Meanwhile, revenue of the company was up 12.1 percent at Rs 511.5 crore against Rs 456.4 crore.

Earnings before interest, taxes, depreciation and amortization (EBITDA) was down 14.1 percent at Rs 39.1 crore and EBITDA margin declined 240 bps at 7.6 percent.

According to Motilal Oswal the company has posted dismal performance due to weak realisation. However, asset acquisition of JP Associates would help company to raise capacity by 38 percent as it like the quality of assets.

The combined valuation of USD 85/T is attractive and it value the company at EV/Tonne of USD 86 on FY20e.

The broking house has put a buy call on the stock with a target at Rs 179 per share.

At 13:32 hrs Orient Cement was quoting at Rs 152.40, down Rs 4.15, or 2.65 percent on the BSE.

Posted by Rakesh Patil
First Published on Jan 30, 2018 01:40 pm
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