Deccan Cements Ltd. share price target and research reports

Name: Latest research reports of Deccan Cements Ltd. authored by HDFC Securities and published by - Trendlyne research reports.
Item: Deccan Cements Ltd.
Rating: 4
Author: HDFC Securities

Latest analyst research reports with target prices and PDF download for DECCANCE, BSE:502137 Deccan Cements Ltd.

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Deccan Cements Ltd.

12 Nov 2022

651.75

-0.56%

HSIE Results Daily: Trent, NHPC, Astral, Torrent Power, Emami, Fine Organic Industries, Gujarat State Petronet, Kalpataru Power Transmission, HG Infra, Sudarshan Chemical, JMC Projects, Deccan Cements

Accumulate: Deccan Cements Ltd.

HDFC Securities

Gujarat State Petronet: Our ADD rating on Gujarat State Petronet with a TP of INR 255 is premised on (1) muted transmission volume over FY22-25E due to a high spot LNG price environment, driven by geopolitical issues, low global inventories, and pick-up in demand post reopening of economies and (2) limited upside triggers in the near term. Hence, we believe that, at present, the stock is fairly valued with an RoE of 13% in FY24E and a combined FCF of INR 25bn over FY23-25E. Kalpataru Power Transmission: Kalpataru Power (KPTL) reported revenue/EBITDA/APAT of INR 15.3/1.3/0.6bn, missing our estimates by 4.7/10/19%. The margin was impacted during the quarter due to higher input and raw material prices, elevated logistics costs, lower absorption of overheads, and closure of old projects. KPTL secured new orders worth INR 68.9bn in FYTD23, taking the order book (OB) to INR 188.6bn (~2.7x FY22 revenue, excluding L1 of INR 43bn). The standalone gross/net debt increased to INR 15.9/12.5bn as of Sep'22 vs. INR 13.5/9.3bn as of Jun'22. The pending cash flow to be realised from the Indore real estate project, for which OC was received in Jul'22, is INR 2.7-2.8bn (net basis INR 2bn), expected to be received in the next 10-12 months. This shall help deleverage the balance sheet further. Given strong order inflows, tight control on B/S and NWC, and guidance on the reduction of promoter pledges, owing to strong cash flows/land monetisation by the parent, we increase our valuation multiple from 12x to 14x. Given strong order inflows, we increase our...

Deccan Cements has lost -39.64% in the last 6 Months

Deccan Cements Ltd.

08 Dec 2020

651.75

-0.56%

DECCAN CEMENTS LTD.

Buy: Deccan Cements Ltd.

Ventura

We initiate coverage on Deccan Cements with a BUY for a price target of Rs. 600 (6X EV/EBITDA FY23) representing potential appreciation of 60% over the next 24 months from the CMP of Rs. 380

Deccan Cements Ltd. is trading below all available SMAs

Deccan Cements Ltd.

20 Aug 2020

651.75

-0.56%

Deccan Cements

Buy: Deccan Cements Ltd.

Anand Rathi

Good operating show; WHRS to aid savings; retaining a Buy Amid the tough business environment, Deccan Cements reported an enhanced operating performance, beating our estimates, aided by price hikes and cost savings, though the volume decline was in line with the industry. On the commencement of the 6MW WHRS, savings in fuel costs are expected to aid its operating performance. The GU expansion is currently on hold. We believe it strong net cash balance sheet and current short term profitability augurs well. We retain our Buy...

Deccan Cements Ltd. is trading below all available SMAs

Deccan Cements Ltd.

14 Feb 2020

651.75

-0.56%

Deccan Cement (3QFY20): Short term pain on weak demand. Maintain BUY

Buy: Deccan Cements Ltd.

Target

HDFC Securities

Despite near term weakness, we continue to like DCL for its strong focus on remunerative pricing and cost reduction measures. We expect demand revival in FY21E to further aid earnings recovery. Thus, we value the co at 5.7x Sep'21E EBITDA (in-line its 5-yr mean multiple). Maintain BUY with TP Rs 500/share (implies EV of USD 47/MT). DCL currently trades at an extremely low val of 2.7/3.3x FY21/22E EBITDA and EV of USD 25/MT. We maintain BUY with TP Rs 500 (5.7x its Sep21E EBITDA). In 3QFY20, DCL posted weak results (in-line EBITDA), hit by sharp demand contraction in AP/T markets (short term pain in our view).

Deccan Cements Ltd. is trading below all available SMAs

Deccan Cements Ltd.

27 Nov 2019

651.75

-0.56%

Deccan Cement

Sell: Deccan Cements Ltd.

ICICI Securities Limited

Currently, the demand scenario in Andhra Pradesh is sluggish due to cancellation of several projects by the newly elected government. This, combined with sand availability and monsoon seasonality, led to a slump in construction activities in the state. Lower cement offtake in the first half of FY20 is attributable to these reasons. Demand recovery in the region is expected from late FY20 or FY21 once the cancelled projects are reallocated. With Deccan Cements having major exposure to the state, the current scenario would act as headwind for growth in the near term....

Deccan Cements has lost -39.64% in the last 6 Months

Deccan Cements Ltd.

13 Nov 2019

651.75

-0.56%

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.

Deccan Cements Ltd. is trading below all available SMAs

Deccan Cements Ltd.

09 Aug 2019

651.75

-0.56%

Deccan Cement (1QFY20): Firm and stellar show. Maintain BUY

Buy: Deccan Cements Ltd.

Target

HDFC Securities

We like DCL for its strong margin focus, increasing cost reduction measures and as regional pricing outlook has improved. Healthy cash generation has increased net cash on books, adding to balance sheet comfort for the capacity expansion. Maintain BUY with TP Rs 670/share (at 6x FY21E EBITDA, implying EV of USD 61/MT). The stock currently trades at 3.8x FY21E EBITDA and EV of USD 39/MT. Key risks: Continuation of weak demand beyond 1H, sharp reversal in fuel/diesel prices as against the falling trends currently. We maintain BUY with TP Rs 670/share (6x FY21 EBITDA). Our TP implies EV of USD 61/MT.

Deccan Cements has lost -39.64% in the last 6 Months

Deccan Cements Ltd.

29 May 2019

651.75

-0.56%

Deccan Cement (4QFY19): Volume decline offset by strong margin. Maintain BUY

Buy: Deccan Cements Ltd.

HDFC Securities

We like DCL for its strong margin focus, increasing cost reduction measures and as regional pricing outlook has improved. We expect DCL to announce brown-field expansion (potentially 1-1.5mn MT) this year as DCL's utilization will inch up to 88% by FY21 (vs 77% in FY19). Healthy cash generation has increased net cash on books, adding to balance sheet comfort for the upcoming expansions. Maintain BUY with TP Rs 680/share. We maintain BUY with TP Rs 680/share (6x FY21 EBITDA). Our TP implies EV/MT of USD 62. During 4QFY19, while DCL disappointed with vol decline, unitary EBITDA rose to Rs 701/MT (+40% YoY) boosting EBITDA/PAT growth.

Deccan Cements Ltd. is trading below all available SMAs

Deccan Cements Ltd.

10 Aug 2018

651.75

-0.56%

Deccan Cements

Buy: Deccan Cements Ltd.

Centrum Broking

Deccan Cements (DCL) registered 23% YoY volume growth in Q1FY19, buoyed by strong demand across all south markets. Still, aggressive competition is preventing price recovery while fuel and freight costs are on rise, leading to 7% EBITDA decline YoY. We continue to like DCL owing to (1) its strong balance sheet and (2) as we expect pricing to recover in south which should help the industry pass on the energy cost inflation. DCL is trading at extremely cheap valuations (14% AOCF/EV yield, 4.6x...

Deccan Cements has lost -39.64% in the last 6 Months

Deccan Cements Ltd.

13 Nov 2017

651.75

-0.56%

Deccan Cements

Buy: Deccan Cements Ltd.

Centrum Broking

We retain our Buy rating on Deccan Cements (DCL) with a revised TP of Rs670. DCL reported weak earnings growth in Q2Y18 (EBITDA/PAT down 23%/30% YoY) led by high cost inflation and flattish volume offtake. We continue to like DCL owing to 1) the improving demand outlook in the south, 2) DCL's higher than peers profitability metrics, due to its...

Deccan Cements Ltd. is trading below all available SMAs

Is Deccan Cements Ltd. worth buying?

70 Votes:

Buy 80.0%

Sell 12.86%

Hold 7.14%