ADVERTISEMENT

Deccan Cements - Valuation Re-Rating A Probability: Anand Rathi

Deccan Cements - Valuation Re-Rating A Probability: Anand Rathi

<div class="paragraphs"><p>Concrete is poured from a  truck at a construction site. (Photographer: Susana Gonzalez/Bloomberg).</p></div>
Concrete is poured from a truck at a construction site. (Photographer: Susana Gonzalez/Bloomberg).

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.

Anand Rathi Report

Good demand continued in Deccan Cements Ltd.'s key operating regions (Andhra Pradesh/Tamil Nadu/Telangana), leading to cement volumes growing 53% YoY to 0.53 million tonnes.

Realisations grew 12.8% YoY (though QoQ, down 2.7%).

Prices were hiked in June 2021; however, their sustainability will be a concern because of the commencement of the monsoon.

FY21 volumes grew 20.8% YoY to 1.78 million tonnes, the most, with capacity utilisation reaching 79%.

We expect cement volumes and revenue to clock 7% compound annual growth rates over FY21-23.

Risks: Demand slowdown; rise in input costs.

Click on the attachment to read the full report:

Anand Rathi Deccan Cements Company Update.pdf

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.