About the Company:
Largest Portland cement and ready mix concrete producer with a good track record of innovative research and product development is a hallmark of quality and durability. The company offers a variety of products such as: Gold and Silver range of Cement, Bulk Cement, ACC Leak block, Ready Mix Concrete along with Value added products.
QoQ & YoY Performance:
India’s one of the major cement & mixture producer has declared the results for the third quarter of financial year ending March 2020.
- Net Profit After Tax: The company’s Net profit during the quarter increased by 18.20% stood at Rs 323.02 crores in March 2020 as against Rs 273.28 crores in December 2019. While it fell down by 6.65% on YOY comparison.
- Net Revenue: Net sales figures plunged by 10.82% and landed to Rs 3433.02 crores during the period ended March 31, 2020, compared to Rs 3849.63 crores during the period ended March 31, 2019. It dropped by 13.52% in compare to quarter ending December 31st 2019 lead by Corona Virus impact.
- EBITDA Margins: The company’s EBITDA margins improved marginally in Q4FY20 where it stands at 18.71% against the Q4FY19 which was stood at 17.88%.
- PAT Margins: PAT Margins reported higher in Q4FY20 at 9.41% against 8.99% in the same quarter last year.
As per Lokesh Sethia, SEBI Registered Research Analyst, the stock is trading at Rs. 1153 per share. One of the largest cement producing company has posted a disappointing business result for final quarter of FY20 due to overall economic weakness and coronavirus rotted the worldwide economy. Though stock seems good pick at this price. Hence, we recommend it to “BUY” for the target of 1425 levels for the 6 months horizon.