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Securities has buy call on Orient Cement with a target price of Rs 160. The current market price of . is Rs 119.45. Time period given by analyst is one year when Ltd. price can reach defined target.
Orient Cement Ltd., incorporated in the year 2011, is a Small Cap company (having a market cap of Rs 2434.87 Crore) operating in Cement sector.
Orient Cement Ltd. key Products/Revenue Segments include Cement, Scrap and Power for the year ending 31-Mar-2021.
Financials
For the quarter ended 31-03-2022, the company reported a Standalone Total Income of Rs 805.85 Crore, up 29.97 % from last quarter Total Income of Rs 620.01 Crore and down -3.41 % from last year same quarter Total Income of Rs 834.28 Crore. Company reported net profit after tax of Rs 73.24 Crore in latest quarter.
Investment Rationale
In Q4, Orient’s consolidated volume/revenue/EBITDA/APAT fell 12/3/24/27% YoY, dragged by weak demand and rising energy costs. High share of AFR and domestic coal usage cushioned margin contraction to healthy level of INR 946/MT (-14/-2% YoY/QoQ). Healthy cash flow has cooled off its net debt/EBITDA to 0.4x, boosting its capability to take up next round of expansions. The recent fall in the stock price also makes the valuation attractive. Thus, the brokerage upgrades rating on Orient to BUY from ADD earlier, with an unchanged TP of INR 160/share (8x Mar-24E consolidated EBITDA).
Promoter/FII Holdings
Promoters held 37.37 per cent stake in the company as of 31-Mar-2022, while FIIs owned 6.54 per cent, DIIs 14.84 per cent.
Orient Cement Ltd., incorporated in the year 2011, is a Small Cap company (having a market cap of Rs 2434.87 Crore) operating in Cement sector.
Orient Cement Ltd. key Products/Revenue Segments include Cement, Scrap and Power for the year ending 31-Mar-2021.
Financials
For the quarter ended 31-03-2022, the company reported a Standalone Total Income of Rs 805.85 Crore, up 29.97 % from last quarter Total Income of Rs 620.01 Crore and down -3.41 % from last year same quarter Total Income of Rs 834.28 Crore. Company reported net profit after tax of Rs 73.24 Crore in latest quarter.
Investment Rationale
In Q4, Orient’s consolidated volume/revenue/EBITDA/APAT fell 12/3/24/27% YoY, dragged by weak demand and rising energy costs. High share of AFR and domestic coal usage cushioned margin contraction to healthy level of INR 946/MT (-14/-2% YoY/QoQ). Healthy cash flow has cooled off its net debt/EBITDA to 0.4x, boosting its capability to take up next round of expansions. The recent fall in the stock price also makes the valuation attractive. Thus, the brokerage upgrades rating on Orient to BUY from ADD earlier, with an unchanged TP of INR 160/share (8x Mar-24E consolidated EBITDA).
Promoter/FII Holdings
Promoters held 37.37 per cent stake in the company as of 31-Mar-2022, while FIIs owned 6.54 per cent, DIIs 14.84 per cent.
(Disclaimer: Recommendations given in this section or any reports attached herein are authored by an external party. Views expressed are that of the respective authors/entities. These do not represent the views of Economic Times (ET). ET does not guarantee, vouch for, endorse any of its contents and hereby disclaims all warranties, express or implied, relating to the same. Please consult your financial adviser and seek independent advice.
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