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Buy Prism Cement; target of Rs 140: Motilal Oswal

Motilal Oswal is bullish on Prism Cement has recommended buy rating on the stock with a target price of Rs 140 in its research report dated 8 August 2017.

August 14, 2017 / 16:59 IST
     
     
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    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.

    For all recommendations report, click here

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    first published: Aug 14, 2017 04:59 pm

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