Mangalam Cement - Amongst the better relative performers for the quarter - PhillipCapital

Mangalam Cement (MGC) has surprised positively in 1QFY14 by posting marginally better than operating results. Marginal clinker sales (-97% YoY; -85% QoQ) helped MGC improve its blended realisations. Blended realisations were reported at Rs3,746 (+4% YoY; +9% QoQ). Though small in size, MGC has clearly posted relatively better results than other cement manufacturing companies. However, like other cement companies, we have downgraded our target multiple on MGC as well. This is on back of lower than expected volume growth for the industry and the larger concerns of demand growth for the sector. We maintain our Buy rating on the stock with a price target of Rs132/-. We also hosted the 1QFY14 earnings call for MGC.

Source : Equity Bulls

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