Get App
Last Updated : Aug 13, 2019 03:22 PM IST | Source:

Hold India Cement; target of Rs 95: ICICI Direct

ICICI Direct recommended hold rating on India Cement with a target price of Rs 95 in its research report dated August 13, 2019.

Broker Research @moneycontrolcom
  • bselive
  • nselive
Todays L/H

ICICI Direct's research report on India Cement

On a broad view, India Cements reported a positive set of Q1FY20 numbers with sales and profitability beating our estimates. Revenues for the quarter increased ~8% YoY to Rs 1468.8 crore (above I-direct estimate of Rs 1325 crore) on the back of strong growth in realisations while volumes declined marginally. Volumes for the quarter were at 3.04 MT (above I-direct estimate of 2.8 MT). Blended realisations showcased a strong increase by 9.2% YoY to Rs 4832/t. EBITDA margins expanded 500 bps YoY to 16.5% YoY while EBITDA/t increased 57% YoY to Rs 796/t on the back of a strong improvement in realisations owing to price hikes taken in the previous and this quarter. EBITDA increased 55% YoY to Rs 242 crore (vs. I-direct estimate of Rs 180 crore) and PAT increased 240% YoY to Rs 72.2 crore (vs. I-direct estimate of Rs 32.8 crore) on the back of strong profitability during the quarter.


Hence, we value India Cements at ~7x FY21E EV/EBITDA, thus reducing our target price from Rs 115 earlier to Rs 95 per share.

For all recommendations report, click here

Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on are their own, and not that of the website or its management. advises users to check with certified experts before taking any investment decisions.

Subscribe to Moneycontrol Pro and gain access to curated markets data, trading recommendations, equity analysis, investment ideas, insights from market gurus and much more. Get Moneycontrol PRO for 1 year at price of 3 months at 289. Use code FREEDOM.
First Published on Aug 13, 2019 03:22 pm
Follow us on
Available On
PCI DSS Compliant