Arihant Capital has given Buy recommendation for Orient Cement with a target price of Rs. 238 in its research report issued on Feb 03, 2022
Arihant Capital’s research report on Orient Cement
Orient Cement reported weak set of numbers in Q3FY22 and were below our expectation on all fronts Net Revenue grew by 2.1% YoY, and 0.7% QOQ to INR 6175 mn below our expectation of INR 6816 mn . Topline growth on YOY basis was mainly due to rise in realization/tonne. Sales volume de grew by 10.3% YoY, and 4.7% Q0Q to 1.22 mn tonnes below our expectation of 1.41 million tonnes. Volume was impacted amid lower demand. Realization /tonne grew by 13.9% YoY and 5.7% QoQ to INR 5061 above our expectation of INR 4869.
Volume was impacted amid lower demand. Realization /tonne grew by 13.9% YoY and 5.7% QoQ to INR 5061 above our expectation of INR 4869.
We believe OCL is wellplaced to take advantage of a revival in the cement demand in its operating regions by leveraging its planned capacity expansion, better monitoring of cost drivers, and improving financials We value the stock at 4 (x) EV/EBIDTA to its FY24E EBIDTA of INR 12809 Mn to arrive at a target price of INR 238 and we maintain Buy rating on the stock with an upside potential of 37.8%.
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At 17:30 Orient Cement was quoting at Rs 172.90, up Rs 0.15, or 0.09 percent.
It has touched an intraday high of Rs 176.00 and an intraday low of Rs 171.85.
It was trading with volumes of 51,866 shares, compared to its thirty day average of 59,716 shares, a decrease of -13.15 percent.
In the previous trading session, the share closed up 2.31 percent or Rs 3.90 at Rs 172.75.
The share touched its 52-week high Rs 185.50 and 52-week low Rs 87.50 on 08 November, 2021 and 12 February, 2021, respectively.
Currently, it is trading 6.31 percent below its 52-week high and 98.63 percent above its 52-week low.
Market capitalisation stands at Rs 3,542.18 crore.