HDFC Securities is bullish on Orient Cement has recommended buy rating on the stock with a target price of Rs 95 in its research report dated July 30, 2020.
HDFC Securities' research report on Orient Cement
Orient’s net sales/EBITDA/APAT fell 40/34/54% YoY to Rs 4.10/0.98/0.26bn respectively, hit hard by sharp 46% volume decline. However, the company was able to contain earnings decline, aided by strong fixed cost reduction and robust realisation gains. The pace of volume decline is slowing down, and expected demand acceleration from AP/T governments should also support sales recovery, going ahead. While we expect cement realisation to cool off from peak-1Q level, subdued fuel costs and healthy cost controls should drive profit uptick.
Outlook
We maintain BUY, with a revised TP of Rs 95/share.
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