Views on India Cement 2QFY2016 Results: Angel Broking

views of Mr. Shrenik Gujrathi (Sr. Research Analyst - Cement, Angel Broking) on India Cement 2QFY2016 Results:

"India Cement 2QFY2016, results were better than expected on profitability front. Net sales during the quarter declined by 4.6% YoY to INR 1079.1cr, and were marginally below our estimate of INR 1095.6cr. However operating profit grew by 27.6% YoY to INR 228.6cr and was better than estimate of INR 193.9cr. The EBITDA improvement was largely due to 10.7% YoY decline in operating cost, led by 16.4% and 16.9% YoY fall in power & fuel and freight expenses. EBITDA margin during the quarter improved by 536bp YoY to 21.2% and was above our estimate of 17.7%. The company reported net profit at INR 41cr as against our estimate of INR 29.5cr. We maintain Buy rating on the stock with target price of INR 112."

Shares of INDIA CEMENTS LTD. was last trading in BSE at Rs.82.35 as compared to the previous close of Rs. 83.6. The total number of shares traded during the day was 521133 in over 2880 trades.

The stock hit an intraday high of Rs. 85.2 and intraday low of 81.75. The net turnover during the day was Rs. 43540669.

Source : Equity Bulls

Keywords