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

Concrete is poured from a truck at a construction site. (Photographer: Susana Gonzalez/Bloomberg).

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


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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


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