HDFC Securities' research report on Orient Cement
Orient reported 20/6% QoQ/YoY volume recovery in Q4FY23 (flattish five-year CAGR) on healthy non-trade demand. Unit EBITDA recovered ~INR 180 per MT QoQ on op-lev gains to INR 812 per MT (it reported low employee and other expenses despite healthy volume growth QoQ). Orient has changed its Capex plan—it will add a 3mn MT brownfield IU in Chittapur (expected by H1FY26E). The 10MW WHRS in Chittapur will get operational in Q1FY24 and boost margin FY24 onwards. Orient faces increased regional competition from recent expansions by big players. The planned Chittapur expansion should stretch gearing, in our view.
Outlook
We maintain our BUY rating on Orient Cement with an unchanged TP of INR 155/share (7x Mar-25E EBITDA).
For all recommendations report, click here
Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
