Buy Prism Johnson; target of Rs 61: Anand Rathi

Anand Rathi 's research report on Prism Johnson

The lockdown hit the TBK and RMC divisions hard, leading to losses for Prism while its revenue and EBITDA dropped steeply y/y, 49% and 78.5% respectively. The cement division, too, was washed out in April, but cost savings helped to a y/y higher EBITDA/ton. With the TBK and RMC divisions likely to be weak, de-levering and divestment of non-core businesses would help consolidate operations.

Outlook

We retain our Buy rating, with a higher TP of `61 (earlier `46)