India Cements-- Earnings Disappoint- Maintain HOLD :Emkay

Please Share:: India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��

India Cements

Earnings Disappoint- Maintain HOLD

HOLD

CMP: Rs 84                                       Target Price: Rs 93

---

n     APAT at Rs545 mn (+29% yoy) below est (Rs875 mn). Revenues at Rs9.9 bn +3.5%yoy– sharp price hikes led by pricing discipline help realizations (+22%), volumes -14% yoy

n     EBIDTA at Rs1.7 bn (+26% yoy) – below est (Rs2.06 bn) due to lower than est revenue & higher RM & P&F costs. However improved realization drive 75% increase in EBITDA/t to Rs696 

n     Demand growth in south remains muted- still remain key concern. Cut FY12E EPS by 7.3% led by lower volumes assumptions for FY12. Lower TP by 5.1% to Rs93

n     ICL’s valuations of 7.5X EV/EBDITA & ~USD 81/t leaves little upside from current levels, considering FY12 RoCE at 6.4% is barely half the cost of capital -  Maintain HOLD