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SMR
06-02-2015, 11:18 PM
The India Cements Limited is a cement company. The Company has seven integrated plants in Tamilnadu and Andhra Pradesh, one in Rajasthan (through its subsidiary Trinethra Cement Limited) and two grinding units, one each in Tamilnadu and Maharashtra. The Company’s brands include Sankar Super Power, Coromandel King and Raasi Gold. These brands are also available under sub brands such as Shankar Shakti and Coromandel Super Power. The Company’s subsidiaries include Industrial Chemicals and Monomers Limited; ICL Securities Limited; ICL Financial Services Limited; ICL International Limited; Trishul Concrete Products Limited; PT. Coromandel Minerals Resources; Trinetra Cement Limited (formerly Indo Zinc Limited); TCL Coromandel Minerals Pte. Limited; Coromandel Electric Company Limited and India Cements Infrastructures Limited.

Official website: www.indiacements.co.in

SMR
06-02-2015, 11:20 PM
For 4QFY2015, India Cements (ICEM)’ operating performance has come in in line with our estimates. However the net profit is higher, mainly due to higher other income (on a sequential basis) and lower depreciation during the quarter. The company posted a net profit of Rs36.6cr during the quarter vs our estimate of Rs17.9cr and vs a net loss of Rs30.6cr during the same quarter last year. The topline was below our estimate, mainly due to lower realization. Realization/tonne improved by 19.7% yoy to Rs4,805 but was below our estimate of Rs4,964. EBITDA margin jumps 1,090bp yoy: ICEM’s top-line fell by 5.1% yoy, impacted by low demand in its key markets which are situated in South India. The company’s cement sale volume was down 21% yoy to 2.09mn tonne. Cement realization increased by 19.7% yoy to Rs4,805/tonne on account of price hike taken in the south region during the quarter. The OPM improved by 1,090bp on a yoy basis and stood at 17.8% for the quarter on strong realization and decline in operational costs. The company reported an operating profit to Rs182.2cr, an increase of 145.6% yoy. The EBITDA/tonne came in at Rs870. Higher other income and lower depreciation increased the net profit to Rs36.6cr. Outlook and valuation: ICEM’s return ratios have remained subdued over the years due to weak profitability. However, we expect the company’s earnings profile to improve going ahead due to better demand and realizations resulting in higher return ratios. We expect revenue to grow at a CAGR of 9.7% and EBIDTA to grow at a CAGR of 24.6% over FY2015-17. At the current market price, the stock trades at 5.5x FY2017 EV/EBIDTA and EV/tonne of $57 on FY2017 blended capacity. We recommend a Buy rating on the stock with a target price of Rs132 (9x EV/EBIDTA and EV/tonne of $70).

Source: http://www.angelbroking.com

SMR
08-14-2015, 06:56 PM
For 1QFY2016, India Cements (ICEM)’ operating performance is better than our as well as street estimates. The company reported an EBITDA growth of 19.9% yoy to Rs195cr, which is above our estimate of Rs176cr. The EBITDA margin for the quarter improved by 500bp yoy and came in at 18.2%, above our estimate of 15.3%. Consequently the net profit jumped to Rs40.1cr as against a loss of Rs3cr in the same quarter last year. The net profit came in higher on account of betterthan- expected EBITDA numbers and lower interest expenses. The top-line for the quarter stands below our estimate, mainly due to higher-than-expected fall in cement volume. The realization/tonne improved by 18.4% yoy to Rs5,045, which is above our estimate of Rs4,949. EBITDA margin jumps 500bp yoy: ICEM’s top-line fell by 13% yoy, impacted by weak demand in its key markets which are situated in South India. The company’s cement sale volume for the quarter is down 18% yoy to 2.1mn tonne (mt) and is below our estimate of 2.29mt. Cement realization increased by 18.4% yoy to Rs5,045/tonne on account of stable cement price in its key South region. The OPM improved by 500bp on a yoy basis and stood at 18.2% on strong realization and decline in operational costs. The company reported an operating profit to Rs195cr, an increase of 19.9% yoy. The EBITDA/tonne came in at Rs929. Higher EBIDTA and lower interest expenses increased the net profit to Rs40.1cr. Outlook and valuation: ICEM’s return ratios have remained subdued over the years due to weak profitability. However, we expect the company’s earnings profile to improve going ahead due to better demand and stable realizations, thus resulting in higher return ratios. We expect revenue to grow at a CAGR of 9.7% and EBIDTA to grow at CAGR of 28.8% over FY2015-17. At the current market price, the stock trades at 4.5x FY2017 EV/EBIDTA and at an EV/tonne of $52 on FY2017 blended capacity. We recommend a Buy rating on the stock with a target price of Rs112(7.5x EV/EBIDTA and EV/tonne of $60).

Source: http://www.angelbroking.com/