| Prabhudas Lilladher: India Cement - Outperformer |
| Our Web Bureau / Mumbai June 14, 2006 |
| Prabhudas Lilladher initiates coverage on the India Cement with an Outperform. At the current market price of Rs 113, the stock trades at an EV/EBITDA of 6.6x FY07E and a PER of 9.4x FY07E earnings (Rs 12). India Cements (ICL) net sales in FY06 were up 33% to Rs 1,540 crore and net profit of Rs 35.80 crore were reported as compared to net losses of Rs 58.80 crore in FY05. Its EBITDA/t rose 60% to Rs384/t driven by cost efficiency and higher volumes. Cement prices have appreciated by about Rs 35/bag in YTD07 as compared to Q4FY06, as most increases in Tamil Nadu and Andhra Pradesh occurred in April. Going forward, they believe that per tonne EBITDA of south based companies would rise faster in Q1FY07. Prabhudas believe's that ICL |
