Mangalam Cement Profit after tax has turned positive from last two quarter, the company has registered a growth of 6.66% in its quarterly sales from Rs. 210.23 crs in Q4 FY16 to Rs. 225.17 crs in Q1 FY17. The company has lowered down its total expenditure by 16.97% YoY from Rs. 224.18 crs in FY16 Q1 to Rs. 186.12 crs in FY17 Q1.Company’s operating Profit showed jump of 57.01% in QoQ with operating profit margin of 17%. Net Profit margin stands at 10.08%, and Net profit jumped by 60.25% QoQ. Company has zero down its promoter pledge from 51.86% in FY16 Q3.
Mangalam Cement started commercial production in March 1981 with an installed capacity of 4 lakh tonne per annum of Cement. The Company then took up two further expansion scheme envisaging increases in the installed capacity from 4 tonne per annum to 20 lakh tonne per annum in between 1994 to 2005. The Company has recently expanded its capacity from 2.0 MTPA to 3.25 MTPA upgrading its Kiln I capacity by 0.5 MTPA in 2013 and establishing a New Cement Mill of 1.25 MTPA in 2014. They recommend BUY in Mangalam Cement @ 350 with the target of 395.