Orient Cement Ltd., incorporated in the year 2011, is a Small Cap company (having a market cap of Rs 3256.39 Crore) operating in Cement sector.
Orient Cement Ltd. key Products/Revenue Segments include Cement, Scrap and Power for the year ending 31-Mar-2021.
Financials
For the quarter ended 30-09-2021, the company has reported a Standalone Total Income of Rs 616.12 Crore, down -11.09 % from last quarter Total Income of Rs 693.00 Crore and up 28.31 % from last year same quarter Total Income of Rs 480.18 Crore. Company has reported net profit after tax of Rs 56.88 Crore in latest quarter.
Investment Rationale
The brokerage believes the cement demand in the country will remain buoyant backed by higher infra spending by the government, focus on affordable and low-cost housing, and robust rural and real estate demand. The company’s premium cement portfolio is growing well along with the price hikes and better demand, the input cost pressure is expected to subside as well. Furthermore, deleveraging the balance sheet will strengthen the company’s overall financial standing.
In light of the above attributes, the brokerage expects the company to deliver robust Volume/Revenue/EBITDA and APAT CAGR of 13%/18%/20% and 36% over FY21-23E. The stock is currently trading at 5x and 4x FY22E and FY23E EV/EBITDA and EV/Tonne of $56 and $51 FY22E and FY23E. It retains BUY rating on the stock with a target price of Rs 210/share, valuing the company at 5.5x of its FY23E EV/EBITDA. TP implies an upside of 36% from CMP.
Promoter/FII Holdings
Promoters held 37.4 per cent stake in the company as of March 31, 2021, while FIIs held 2.1 per cent, DIIs 22 per cent and public and others 36.5 per cent.
(Disclaimer: Recommendations given in this section or any reports attached herein are authored by an external party. Views expressed are that of the respective authors/entities. These do not represent the views of Economic Times (ET). ET does not guarantee, vouch for, endorse any of its contents and hereby disclaims all warranties, express or implied, relating to the same. Please consult your financial adviser and seek independent advice.
