Our TP of Rs 165 values Orient at 8.5x FY19 earnings (US$84/t). Orient Cement reported strong numbers (EBITDA: Rs 1.17bn, Est: Rs 1.06bn, 3x YoY, 54.7% QoQ), as realisations surprised (Rs 4,064/t, 30.0% YoY, 18.0% QoQ, Est- 8.0% QoQ). Part of this may have been owing to the shift in invoicing to FOR (free on rail) terms, as reflected in the higher freight numbers (Rs 996/t, 43.2%, YoY 12.4% QoQ). Despite this, the improvement in pricing is better than expected, as is evident from ex-freight realisations (Rs 3,068, 26.2% YoY, 20.0% QoQ, Est 2,823/t).