BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.
Motilal Oswal Report
The India Cements Ltd.’s Q2 FY22 result was in line with our estimates, although earnings were under pressure due to higher costs.
The lower base of last year aided volume growth of 12% YoY; this was offset by a 13% YoY increase in opex/tonne, leading to a 49.2% YoY drop in blended Ebitda/tonne.
We maintain our FY23E/FY24E estimates on India Cements as valuations at 12 times/9.3 times FY23/FY24E enterprise /Ebitda appear expensive.
Higher volatility in earnings due to the demand-supply mismatch in the South region and higher leverage (net debt/Ebitda at 4.5 times/3.6 times FY22/FY23E) in the absence of capex plans are the key concerns.
Click on the attachment to read the full report:
DISCLAIMER
This report is authored by an external party. BloombergQuint does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BloombergQuint.
Users have no license to copy, modify, or distribute the content without permission of the Original Owner.