Orient Cement Ltd. share price target and research reports

Name: Latest research reports of Orient Cement Ltd. authored by Chola Wealth Direct and published by - Trendlyne research reports.
Item: Orient Cement Ltd.
Rating: 5
Author: Chola Wealth Direct

Latest analyst research reports with target prices and PDF download for ORIENTCEM, BSE:535754 Orient Cement Ltd.

Orient Cement Ltd.

29 May 2020

180.99

-0.64%

EARNINGS UPDATE- ORIENT CEMENT 4QFY20

Buy: Orient Cement Ltd.

Target

Chola Wealth Direct

Background: Orient Cement, a CK Birla group company, formed in 2012 following the demerger from Orient Paper and Industries ltd, is a mid-sized south based cement manufacturer. The company is one of the leading cement manufacturers in India with a capacity of 8 MTPA with clinker manufacturing capacity 5.5 MTPA and captive power capacity of 95MW. The Company operates 3 manufacturing facilities, located at Devapur (3 MTPA) in Telangana, Chittapur (3 MTPA) in...

Orient Cement Ltd. has lost -15.61% in the last 1 Month

Orient Cement Ltd.

31 Jan 2020

180.99

-0.64%

EARNINGS UPDATE- ORIENT CEMENT 3QFY20

Orient Cement Ltd.

Chola Wealth Direct

Orient Cement Ltd. is trading below all available SMAs

Orient Cement Ltd.

29 Jan 2020

180.99

-0.64%

Orient Cement (3QFY20): Weak demand subduing earnings recovery. Maintain BUY

Buy: Orient Cement Ltd.

Target

HDFC Securities

Amid continued demand turbulence in the south, Orient exhibited opex reduction. As demand recovers in subsequent quarters, op-lev gains should bolster margin recovery. Orient is also planning to add 10MW WHRS in Karnataka to further reduce opex (FY23 onwards). The stock currently trades at an attractive valuation of 6.9/6.8x FY21/22 EBITDA and at EV of USD 58/MT. We reiterate BUY with a TP of Rs 120 (8x Sep'21E EBITDA). We reiterate BUY on Orient Cement (ORCMNT) with a TP of Rs 120 (8x FY21E EBITDA, implies EV of USD 68/MT).

Orient Cement Ltd. has lost -15.61% in the last 1 Month

Orient Cement Ltd.

23 Oct 2019

180.99

-0.64%

EARNINGS UPDATE-ORIENT CEMENT 2QFY20

Buy: Orient Cement Ltd.

Chola Wealth Direct

Sector: Cement /Small Cap | Earnings Update 2QFY20 Background: Orient Cement, a CK Birla group company, formed in 2012 following the demerger from Orient Paper and Industries ltd, is a mid-sized south based cement manufacturer. The company is one of the leading cement manufacturers in India with a capacity of 8 MTPA with clinker manufacturing capacity 5.5 MTPA and captive power capacity of 95MW. The Company operates 3 manufacturing facilities, located at Devapur (3 MTPA) in Telangana, Chittapur (3 MTPA) in Karnataka and...

Orient Cement Ltd. has lost -24.39% in the last 3 Months

Orient Cement Ltd.

21 Oct 2019

180.99

-0.64%

Hit by weak realizations, high costs; cutting estimates by 6-7 %

Buy: Orient Cement Ltd.

Target

Motilal Oswal

21 October 2019 ORCMNTs volumes fell 16% YoY to 1.24mt in 2QFY20. Realizations increased 9% YoY but were down 9% QoQ to INR4,150/t due to weak pricing in the markets of south and Maharashtra. Cost/t rose 4% YoY (+4% QoQ) to INR3,718, higher than our estimate of INR3,554, due to higher freight cost/t (+4% YoY) and other expenses/t (+32% YoY). Freight cost was higher, primarily due to an increase in average lead distance as ORCMNT reached newer markets in south Karnataka. Thus, EBITDA/t stood at INR432/t (+78% INR908m) with the margin at 10.4% (+4.04pp YoY, -11.3pp QoQ). Tax rate was at 28.5% v/s 35% in 2QFY19. ORCMNT incurred a net loss of INR77m Sales were flat at INR12b, while EBITDA increased 68% YoY to INR2b. PAT came in at INR482m v/s loss of INR7.4m in 1HFY19. For 2HFY20, sales/EBITDA/PAT growth is estimated at 4%/5%/27% YoY.

Orient Cement Ltd. has lost -15.61% in the last 1 Month

Orient Cement Ltd.

30 Jul 2019

180.99

-0.64%

Orient Cement (1QFY20): Gem, now polished! Maintain BUY

Buy: Orient Cement Ltd.

Target

HDFC Securities

ORMCNT, already a cost leader among mid size Indian cement cos, is evaluating WHRS additions to further reduce opex (by FY21E). ORCMNT will also do calibrated capex (all brown-field) to increase its capacity by 6 MT to 14mn MT by FY25E, across its existing locations. Robust earnings and calibrated capex should double ORCMNT's RoCE to 10% in FY19-20E (vs 5% in FY18-19) and keep its net D/E at/below 1x. The stock currently trades at attractive valuations of 6.1x FY21 EBITDA and at EV/MT of USD 61. We reiterate BUY with a TP of Rs 150 (8x FY21E EBITDA). We reiterate BUY on Orient Cement (ORCMNT) with a TP of Rs 150 (8x FY21E EBITDA). ORCMNTs stellar show continued in 1QFY20 on strong realization tailwinds amid benign input costs.

Orient Cement Ltd. is trading below all available SMAs

Orient Cement Ltd.

29 Jul 2019

180.99

-0.64%

Demand trends muted but better realizations drive margins

Buy: Orient Cement Ltd.

Target

Motilal Oswal

Volumes decline but pricing improves: Volumes declined 6% YoY to 1.5mt in 1QFY20. However, realizations increased 14% YoY (+11%QoQ) to INR4,552, led by strong pricing in underlying markets. Revenue grew 7.5% YoY (-8% QoQ) to INR6.8b (in-line). driving margins improvement: Cost/t increased 3% YoY (+9% QoQ) to INR3,562/t, as freight cost/t inched up 6% YoY (+8% QoQ), primarily due to higher lead distance as ORCMNT attempted to garner sales from betterrealization markets. Other expenses/t rose 12% YoY (+25%QoQ) due to operating deleverage. However, led by healthy realizations, EBITDA/t...

Orient Cement Ltd. has lost -24.39% in the last 3 Months

Orient Cement Ltd.

02 May 2019

180.99

-0.64%

Orient Cement (4QFY19): Price + volume + discipline = Upgrade!

Buy: Orient Cement Ltd.

Recommendation Target

HDFC Securities

ORMCNT, already a cost leader among mid size Indian cement cos, is planning to add WHRS across its Telangana and Karnataka plants by FY21E to further drive up efficiencies. Thereafter, ORCMNT hopes to commence brown-field expansions (potentially 6 MT by FY25E, across locations). This will be calibrated in line with OCF, which translates to leverage hovering around ~1x. With better operations and calibrated capex, RoCE should double to 10% in FY19-20E (vs 5% in FY18-19). We estimate EBITDA/PAT to rebound at 29/105% CAGR during FY19-21E off a weak base, driven by pricing and cost tailwinds. Our TP jumps to Rs 140 (at an affordable 8x FY21E EBITDA). Upgrade to BUY from NEUTRAL. Key risks include weak cement pricing, higher fuel prices and reckless capex (all of which look unlikely hereon). Orient Cement (ORCMNT) becomes a conviction BUY from NEUTRAL (in our 4QFY19 preview), with a TP of Rs 140 (at a mere 8x FY21E EBITDA). A robust comeback in Q4, continued realization and cost tailwinds and calibrated capex outlook drive our rediscovered confidence.

Orient Cement Ltd. has lost -46.43% in the last 1 Year

Orient Cement Ltd.

30 Apr 2019

180.99

-0.64%

EARNINGS UPDATE-ORIENT CEMENT 4QFY19

Buy: Orient Cement Ltd.

Target

Chola Wealth Direct

Sector: Cement /Small Cap | Earnings Update 4QFY19 Background: Orient Cement, a CK Birla group company, formed in 2012 following the demerger from Orient Paper and Industries ltd, is a mid-sized south based cement manufacturer. The company emerged as one of the fastest growing and leading cement manufacturer in India with a capacity of 8 MTPA with clinker manufacturing capacity 5.5 MTPA and captive power capacity of 95MW. The Company is primarily engaged in the manufacture and sale of Cement and its...