Hold Madras Cement - Anand Rathi

Madras Cement (Price: Rs.249, Target: Rs.205, Rating: Hold)

We expect Madras Cement to post 12% yoy revenue growth, led by 12% growth in cement revenues. Cement volumes are expected to rise 2% yoy (dropping 11% qoq) whereas realisations are expected to rise 9% yoy (dipping 3% qoq).

We expect the company to post EBITDA per ton of Rs.1,150 compared to Rs.1,350 in the previous quarter and Rs.1,190 in the yearago quarter. EBITDA is expected to fall 35% qoq (and 1% yoy) due to a marginal loss in the wind-turbine segment vs positive Rs.400m in 2QFY13.

Due to the increase of more than 35% in interest charges and 22% in depreciation we expect PAT to dip 17% yoy.

Source : Equity Bulls

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