Star Cement Q3 Results Review - Robust Quarter: Dolat Capital

BQ Prime’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy. .Dolat Capital Report.Star Cement Ltd. reported volume, revenue in line, however realisation, Ebitda, Ebitda/tonne, adjusted profit afte tax above estimates.Star Cement posted 11.7% YoY growth in revenue (up 4.3% QoQ) to Rs 6.2 billion led by led by up 3.9% YoY in volume to 0.91 million tonne (up 1.9% QoQ) coupled with up 7.5% YoY in realisation/tonne to Rs 6,823 (up 2.3% QoQ). Ebitda/adjusted profit after tax reported up 60.6% / up 20.7% YoY to Rs 1.1 billion/ Rs 529 million.We expect 18.4%/ 25.3%/ 2.3% revenue/ Ebitda/adjusted profit after tax compound annual growth rate over FY22-25E led by 16.5%/ 10.0%/ 25.0% volume growth and 3.5% / 0.0%/ 0.0% realisation growth in FY23E/ FY24E/ FY25E.We broadly maintain our revenue estimates for FY23E/ FY24E/ FY25E. However, we increase our Ebitda/adjusted profit after tax estimates by 7.9%/ 11.2%, 5.4%/ 5.4% and 6.3%/ 9.9% for FY23E, FY24E and FY25E respectively factoring lower opex. With commencement of its two million tonnes per annum grinding unit at Siliguri, Wes Bengal in Jan-21, Star Cement's total cement grinding capacity increased by 32.6% to 5.7 mtpa which will support additional volume growth and reduce its cost of sales for outside north east region. With this expansion, the company will be able to participate in ongoing growth of Eastern market (particularly WB and Bihar)..Click on the attachment to read the full report:.UltraTech Cement Q3 Results Review - Higher Utilisation Comforting; Profits To Improve: Motilal Oswal.DISCLAIMERThis report is authored by an external party. BQ Prime does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BQ Prime..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Star Cement Q3 Results Review - Robust Quarter: Dolat Capital

Star Cement expects to maintain Ebitda/tonne of Rs 1200-1250 in near term.

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