Hold Prism Johnson, target price Rs 72: Emkay Global

Emkay Global has given a hold rating to Prism Johnson with a target price of Rs 72. The share price moved down by 0.27 per cent from its previous close of Rs 75.40. The stock’s last traded price is Rs 75.20.

Prism Johnson Ltd., incorporated in the year 1992, is a Mid Cap company (having a market cap of Rs 3787.76 Crore) operating in Cement sector.

Financials
For the quarter ended 30-09-2020, the company reported a Consolidated sales of Rs 1326.28 Crore, up 56.75 % from last quarter Sales of Rs 846.12 Crore and down -5.17 % from last year same quarter Sales of Rs 1398.54 Crore Company reported net profit after tax of Rs 25.90 Crore in latest quarter.

Investment Rationale
The brokerage maintains FY22/23 EBITDA estimates, but raise FY21E EBITDA by 19.4% on better profits in Q2 and guidance of lower other expense in H2. Net D/E at 1.5x and net debt/EBITDA at 2.9x in FY22 appear rich in absence of capex plans.

Promoter/FII Holdings
Promoters held 74.9 per cent stake in the company as of Sept 30, 2020, while FIIs held 3 per cent, DIIs 7.9 per cent and public and others 14.3 per cent.