Please Share:: 
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
http://content.icicidirect.com/mailimages/ICICIdirect_ACC_Q1CY12.pdf
H i g h e r v o l u m e s , r e a l i s a t i o n s l i f t p r o f i t …
In Q1CY12, ACC reported net sales of | 2860 crore (up 19% YoY, ~14%
QoQ) and EBITDA margin of 21.5%, which were in line with our
respective estimates of | 2964 crore and 21.8%. The increase in sales and
margins was led by higher volumes and realisations. The reported PAT of
| 155.4 crore was below our estimate on account of retrospective onetime exceptional expense due to a change in the depreciation policy for
captive power plants. However, the adjusted PAT of | 386 crore was in
line with our estimate of | 409 crore. Sales volumes and realisations
remained strong during the quarter led by a pick-up in demand from
construction activities and increase in prices. The EBITDA/tonne has
increased significantly on a QoQ basis to | 917/tonne (our estimate:
| 960/tonne) due to increased realisation. Going forward, we estimate
EBITDA/tonne of | 755 in CY12E and | 840 in CY13E against | 722/tonne
in CY11.
ƒ EBITDA/tonne up sequentially on operating leverage benefits
Sales volumes increased ~9% YoY (~13% QoQ) to 6.7 MTPA in
Q1CY12 on account of a pick-up in demand coupled with
stabilisation of new capacities. Realisations improved ~9% YoY
(~1% QoQ) to | 4256/tonne led by hike in cement prices during the
quarter. The EBITDA/tonne improved ~40% QoQ to | 917/tonne on
account of benefits of operating leverage due to higher volumes.
However, it has remained flat on a YoY basis as the increase in costs
negated the impact of increase in realisations.
V a l u a t i o n
At the CMP of | 1248, the stock is trading at 20.2x and 17.5x its CY12E
and CY13E earnings, respectively. The stock is trading at an EV/EBITDA of
10.4x and 8.6x CY12E and CY13E EBITDA, respectively. On an EV/tonne
basis, the stock is trading at $135 and $130 its CY12E and CY13E
capacities, respectively. We have valued the stock at $140/tonne at CY13E
capacity of 30.5 MTPA, which is in line with the current replacement cost.
We have maintained our target price of | 1337/share with a HOLD rating.
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
http://content.icicidirect.com/mailimages/ICICIdirect_ACC_Q1CY12.pdf
H i g h e r v o l u m e s , r e a l i s a t i o n s l i f t p r o f i t …
In Q1CY12, ACC reported net sales of | 2860 crore (up 19% YoY, ~14%
QoQ) and EBITDA margin of 21.5%, which were in line with our
respective estimates of | 2964 crore and 21.8%. The increase in sales and
margins was led by higher volumes and realisations. The reported PAT of
| 155.4 crore was below our estimate on account of retrospective onetime exceptional expense due to a change in the depreciation policy for
captive power plants. However, the adjusted PAT of | 386 crore was in
line with our estimate of | 409 crore. Sales volumes and realisations
remained strong during the quarter led by a pick-up in demand from
construction activities and increase in prices. The EBITDA/tonne has
increased significantly on a QoQ basis to | 917/tonne (our estimate:
| 960/tonne) due to increased realisation. Going forward, we estimate
EBITDA/tonne of | 755 in CY12E and | 840 in CY13E against | 722/tonne
in CY11.
ƒ EBITDA/tonne up sequentially on operating leverage benefits
Sales volumes increased ~9% YoY (~13% QoQ) to 6.7 MTPA in
Q1CY12 on account of a pick-up in demand coupled with
stabilisation of new capacities. Realisations improved ~9% YoY
(~1% QoQ) to | 4256/tonne led by hike in cement prices during the
quarter. The EBITDA/tonne improved ~40% QoQ to | 917/tonne on
account of benefits of operating leverage due to higher volumes.
However, it has remained flat on a YoY basis as the increase in costs
negated the impact of increase in realisations.
V a l u a t i o n
At the CMP of | 1248, the stock is trading at 20.2x and 17.5x its CY12E
and CY13E earnings, respectively. The stock is trading at an EV/EBITDA of
10.4x and 8.6x CY12E and CY13E EBITDA, respectively. On an EV/tonne
basis, the stock is trading at $135 and $130 its CY12E and CY13E
capacities, respectively. We have valued the stock at $140/tonne at CY13E
capacity of 30.5 MTPA, which is in line with the current replacement cost.
We have maintained our target price of | 1337/share with a HOLD rating.
No comments:
Post a Comment