Buy Orient Cement target of Rs 65: Anand Rathi

Anand Rathi is bullish on Orient Cement has recommended buy rating on the stock with a target price of Rs 65 in its research report dated May 28, 2020.

Anand Rathi 's research report on Orient Cement

In keeping with the industry, Orient Cement’s Q4 revenue/EBITDA/ PAT dipped 13%/18.5%/29%, following the 10-day lockdown in Mar. To safeguard liquidity in the now uncertain demand circumstance, it postponed expansions and shifted focus to de-levering. The migrant labour impact and supply-chain unavailability are key monitorables. We retain our Buy rating, with a higher target of `65 (earlier `53).

Outlook

With capex postponed, we have raised our FY21e/22e PAT 101%/37%. We retain our Buy rating, with a higher target of `65, based on 6.5x FY22e EV/EBITDA (earlier 7.5x) and an EV/ton of $37.

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