Motilal Oswal is bullish on Shree Cement has recommended buy rating on the stock with a target price of Rs 20,221 in its research report dated January 22, 2019.
Motilal Oswal's research report on Shree Cement
SRCM's 3QFY19 volumes including clinker increased ~11.4% YoY to 5.93mt (in line with est.) led by healthy growth from the eastern region. Realizations increased ~4.4% YoY /1.1% QoQ to INR4,315 (in line with est.), while revenues stood at INR27.8b, +21% YoY (est. INR26.9b). Cement revenue stood at INR25.6b (+16% YoY), while Power revenues stood at INR2.2b (2.15x YoY).
Outlook
We reduce EBITDA/PAT estimate by 2%/3% for FY20 by 3%/5% for FY21. The company trades at 14x/11x EV on FY20/21 EBITDA. We value SRCM at 15x Dec'20 EV/EBITDA and arrive at a Target Price of INR20,221. Buy.
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.
Read More
