Investment idea
PRO Only Highlights
- Quarterly performance largely backed by improved realisations
- Medium-term triggers China plus and protectionist measures for tyre industry
- Valuations not inexpensive; but improved medium-term outlook
- Quarterly performance largely backed by improved realisations
- Medium-term triggers China plus and protectionist measures for tyre industry
- Valuations not inexpensive; but improved medium-term outlook
Highlights
- Margins expanded 130 bps YoY to 13.2 percent in Q3
- Decline in fuel prices to support margins
- Cement prices have fallen 2-3 percent in the peak construction season
- Capacity constraints hurting near-term growth
- New capacity anticipated to commence operations by FY25-end
Deccan Cements (CMP: Rs 555; Market Cap: Rs 778 crores; Rating: Overweight), a small-sized cement manufacturer, reported a stable top line in its third-quarter results with an improvement in profitability. With nearly Rs 400 crore invested in capex, the company