Motilal Oswal's research report on Prism Cement
Prism Cement’s (PRSC) standalone 1 QFY1 8 revenue increased 3% YoY (-7% QoQ) to INR 13.2 b (est. of INR 14.6b), led by a 3% YoY decline in cement volumes .Cement realizations increased ~3 % QoQ (~+11 % YoY) to INR 4,620 (est.of INR4,659) due to improved pricing in its focus markets.
Outlook
Our SOTP value for PRSC is INR 140/share (EV of USD 110/ton, 7x FY 20E RMC EBITDA and 9 x FY 20E TBK EBITDA). PRSC is a pure -play on central India recovery – it is likely to see strong improvement in profitability, driven by higher consolidation in the region over the last 12 -18 months.
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