ICICIdirect has maintained 'Buy' on Mangalam Cement with target price of Rs 277 as against current market price (CMP) of Rs 241 in its report.
Commenting on the investment rationale, the stock broker said, "Mangalam Cement's Q1FY15 numbers came in ahead of our estimates mainly due to a sharp growth in volume along with improved realisations. Revenues were up 35.5% YoY to Rs 2.28 billion led by 28.9% YoY growth in volumes (0.58 MT) while realizations increased 6.4% YoY to Rs 3,954/tonne.
Improved volumes helped in improving margins, which came in at 15.5% with EBITDA/tonne increasing to Rs 614/tonne, up 12.5% YoY. However, net profit declined 31.2% YoY to Rs 130 million due to higher tax."
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