Please Share:: 
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
H i g h e r c o s t s e r o d e m a r g i n …
Mangalam Cement reported net sales of | 124 crore and EBITDA of | 7.4
crore, which were above our respective estimates of | 109 crore and | 5.2
crore on account of higher-than-expected cement realisation, which came
at | 3370/tonne (our estimate: | 3048/tonne). EBITDA/tonne came at |
202/tonne against our expectation of | 146/tonne. Net profit of | 0.7 crore
was below our estimate of | 1 crore on account of lower-than-expected
other income. Cement volumes remained muted during the quarter
because of a slowdown in construction activities due to the monsoon
season. With cement capacity expansion of 1.25 MT in Aligarh (UP), total
capacity would reach 3.25 MT by end of FY13E. We expect cement sales
volume of 1.61 MTPA in FY12E (flat YoY) and 1.75 MTPA in FY13E (up
~9% YoY).
ƒ Net realisation up ~12% YoY (down ~4% QoQ), volumes muted
Cement sales volumes declined ~4% YoY (increased ~2% QoQ) to
0.37 MT due to sluggish demand during the quarter. The realisation
increased ~12% YoY to | 3370/tonne but declined ~4% QoQ due to
a correction in cement prices across its markets.
ƒ EBITDA declines ~67% QoQ to | 202/tonne on lower realisation
The EBITDA/tonne increased ~161% YoY mainly on account of
higher realisation, which negated the impact of an increase in input
costs. However, it declined ~67% on a QoQ basis due to a decline
in realisation coupled with increase in costs.
V a l u a t i o n
At the CMP of | 103, the stock is trading at 10.4x and 6.2x its FY12E and
FY13E earnings, respectively. The stock is trading at an EV/EBITDA of 5.3x
and 6x FY12E and FY13E EBITDA, respectively. On an EV/tonne basis, the
stock is trading at $41 and $39 its FY12E and FY13E capacities of 2 MT
and 3.25 MT, respectively. We have valued the stock at $45/tonne its
FY13E capacity of 3.25 MT, which is ~65% discount to the current
replacement cost of $130/tonne. We have maintained our BUY rating on
the stock with a target price of | 139/share.
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
H i g h e r c o s t s e r o d e m a r g i n …
Mangalam Cement reported net sales of | 124 crore and EBITDA of | 7.4
crore, which were above our respective estimates of | 109 crore and | 5.2
crore on account of higher-than-expected cement realisation, which came
at | 3370/tonne (our estimate: | 3048/tonne). EBITDA/tonne came at |
202/tonne against our expectation of | 146/tonne. Net profit of | 0.7 crore
was below our estimate of | 1 crore on account of lower-than-expected
other income. Cement volumes remained muted during the quarter
because of a slowdown in construction activities due to the monsoon
season. With cement capacity expansion of 1.25 MT in Aligarh (UP), total
capacity would reach 3.25 MT by end of FY13E. We expect cement sales
volume of 1.61 MTPA in FY12E (flat YoY) and 1.75 MTPA in FY13E (up
~9% YoY).
ƒ Net realisation up ~12% YoY (down ~4% QoQ), volumes muted
Cement sales volumes declined ~4% YoY (increased ~2% QoQ) to
0.37 MT due to sluggish demand during the quarter. The realisation
increased ~12% YoY to | 3370/tonne but declined ~4% QoQ due to
a correction in cement prices across its markets.
ƒ EBITDA declines ~67% QoQ to | 202/tonne on lower realisation
The EBITDA/tonne increased ~161% YoY mainly on account of
higher realisation, which negated the impact of an increase in input
costs. However, it declined ~67% on a QoQ basis due to a decline
in realisation coupled with increase in costs.
V a l u a t i o n
At the CMP of | 103, the stock is trading at 10.4x and 6.2x its FY12E and
FY13E earnings, respectively. The stock is trading at an EV/EBITDA of 5.3x
and 6x FY12E and FY13E EBITDA, respectively. On an EV/tonne basis, the
stock is trading at $41 and $39 its FY12E and FY13E capacities of 2 MT
and 3.25 MT, respectively. We have valued the stock at $45/tonne its
FY13E capacity of 3.25 MT, which is ~65% discount to the current
replacement cost of $130/tonne. We have maintained our BUY rating on
the stock with a target price of | 139/share.
No comments:
Post a Comment