Deccan Cements Ltd., incorporated in the year 1979, is a Small Cap company (having a market cap of Rs 509.24 Crore) operating in Cement sector.
PTIPromoters held 56.2 per cent stake in the company as of Sept 30, 2020, while FIIs held 2.5 per cent, DIIs 4.2 per cent and public and others 37.1 per cent.
Anand Rathi has given a buy rating to Deccan Cements with a target price of Rs 514. The share price moved down by 0.22 per cent from its previous close of Rs 362.55. The stock’s last traded price is Rs 361.75.
Deccan Cements Ltd., incorporated in the year 1979, is a Small Cap company (having a market cap of Rs 509.24 Crore) operating in Cement sector.
Financials For the quarter ended 30-09-2020, the company reported a Standalone sales of Rs 198.06 Crore, up 42.89 % from last quarter Sales of Rs 138.61 Crore and up 47.53 % from last year same quarter Sales of Rs 134.25 Crore Company reported net profit after tax of Rs 33.84 Crore in latest quarter.
Investment Rationale H1 coal prices rose by Rs100-150/ton. Management expects a further Rs100-125/ton in H2. It expects volumes to fall 5.4% in FY21 and grow 4.8% in FY22. EBITDA/ton is expected to be Rs1,005/Rs947 in FY21/22 (vs. Rs531 in FY19). The company remained net-debt-free. Net cash per share stood at ~Rs68. The brokerage maintains a Buy rating, at a higher target of Rs514 based on FY22e EV/EBITDA of 4x. Risks: Demand slowdown; rise in input costs.
Promoter/FII Holdings Promoters held 56.2 per cent stake in the company as of Sept 30, 2020, while FIIs held 2.5 per cent, DIIs 4.2 per cent and public and others 37.1 per cent.
PTI
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