Emkay Global Financial Services has downgraded Prism Cement to 'Hold' with target price of Rs 101  in its report.

Commenting on the investment rationale, the stock broker said, ''Prism Cement's Q4 results largely in-line with estimates with OPM at 5.5% (vs est. 5.5%) and EBITDA at Rs 838 million (vs est Rs 869 million). Miss in revenues in the TBK segment led to slight miss in Revenues and EBITDA estimates.

TBK segment reported EBIT level loss of Rs 16 million against a loss of Rs 35 million in Q3FY15. Revenue for the segment increased 6% yoy to Rs 6.6 billion (est. Rs 6.9 billion). RMC segment revenue was flat on yoy basis, EBIT was at Rs66mn (decline of 38% yoy)

Cement sales volume was at 1.5mt (+2.2% yoy) and realization was at Rs 3,747/tn (decline of 7.1% yoy). EBITDA/tn of cement segment was at Rs437 vs estimated Rs 394 mainly driven by cost saving in energy cost with usage of imported coal.

Expect profitability of TBK and Cement segments to improve led by cost saving measures initiated by the company. However, valuations at 8.9x FY17e EV/EBITDA appears rich. We downgrade stock rating to Hold with a revised TP of Rs 101 from earlier: Rs106.''

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