Name: Latest research reports of Deccan Cements Ltd. authored by HDFC Securities and published by - Trendlyne research reports.
Item: Deccan Cements Ltd.
Rating: 5
Author: HDFC Securities

Deccan Cement (2QFY20): Demand contraction pangs. Maintain BUY

Buy: Deccan Cements Ltd.

Target

HDFC Securities

Despite a weak 2Q results, we like DCL for its strong margin focus and increasing cost reduction measures. We expect demand recovery in 2H to boost profitability and internal accruals for growth capex. We maintain BUY with TP Rs 610/share (6x Sep'21E EBITDA and 50% value to its FY22E CWIP). Our TP implies EV of USD 56/MT. The stock currently trades at 4.0/4.7x FY21/22E EBITDA and EV of USD 41/MT. We maintain BUY with TP Rs 610 (6x Sep21E EBITDA and 50% val to FY22E CWIP). Our TP implies EV of USD 56/MT.