India Cements Q3 Review - High Leverage Remains Key Concern: ICICI Securities
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ICICI Securities Report
The India Cements Ltd.’s Q3 FY21 Ebitda at Rs 2.2 billion (up 65% YoY) was better than our and consensus estimates owing to higher than expected realisation.
Cement realisation (including ready mix concrete) declined 3.5% QoQ (up 9% YoY) versus our estimate of 4.5% QoQ decline.
Volumes declined 11% YoY and total cost/tonne was flat YoY – both broadly in line with our estimates.
Accordingly, cement Ebitda/tonne increased 78% YoY to Rs 889/tonne (our estimate Rs 812/tonne).
We broadly maintain our FY21-23E Ebitda; though raise our target price to Rs 120 per share (earlier: Rs 100) based on seven times FY23EV/E on half-yearly rollover.
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