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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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

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