Motilal Oswal - Prism Johnson (PRSMJOHNSN) MOSL: PRISM CEMENT (Buy)-Strong beat led by cement division

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Motilal Oswal

MOSL: PRISM CEMENT (Buy)-Strong beat led by cement division

Prism Cement: Strong beat led by cement division

(PRSC IN, Mkt Cap USD0.6b, CMP INR138, TP INR159, 15% Upside, Buy)

Healthy volume growth: Prism Cement’s (PRSC) standalone 3QFY18 revenue increased 14% YoY (+12% QoQ) to INR12.96b (our estimate: INR12.82b). Cement volumes rose 17% YoY (+22% QoQ) to 1.37mt due to resolution of the sand mining issue in UP and also partially in Bihar. Cement realization increased 6% QoQ, led by normalization of prices post a sharp decline in 2QFY18.
TBK moderates losses: TBK segment’s revenue declined 10% YoY (-6% QoQ) to INR3.90b v/s our estimate of INR4.54b due to inclusion of excise duty in 2QFY17 revenue. Volumes increased on a YoY basis for the segment. EBIT loss in the TBK segment reduced to INR45m from INR292m in 3QFY17. The segment recorded near EBITDA breakeven in the quarter.
RMC segment sees a sharp turnaround: RMC sales stood at INR3.48b (+11% YoY), led by healthy volume growth on account of a pick-up in infrastructure activity. Reported EBIT stood at INR47m, as against a loss of INR2m in 3QFY17.

15/02/2018 8 EN

Underlying

Prism Johnson

Prism Johnson Limited, formerly Prism Cement Limited, is a building materials company. The Company has interest in Portland cement, tiles, bathroom and kitchen (TBK) and ready mixed concrete (RMC). The Company's segments include Cement, TBK, RMC and Insurance. The Company has three divisions: Prism Cement, H&R Johnson (India) (HRJ) and RMC Readymix (India). Prism Cement is a cement manufacturer with units at Satna, Madhya Pradesh with a nameplate capacity of approximately 5.6 million tons per annum (MTPA) of cement. It manufactures Portland Pozzolana Cement (PPC) under the brand name Champion, Champion Plus, Hi-Tech and DuraTech. HRJ operates in TBK segment and offers end-to-end solutions of tiles, sanitary ware, bath fittings, kitchens and engineered marble and quartz. RMC Readymix (India) is ready mixed concrete manufacturer. It offers various concretes, including Enviroprotectcrete, FRCcrete, Thermocrete, Dyecrete and Perviouscrete.

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INE010A01011 National Stock Exchange of India India

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Motilal Oswal

Motilal Oswal Financial Services Ltd. is a reputed name in Financial Services and Online Trading with group companies providing services such as Private Wealth Management, Retail Broking and Distribution, Institutional Broking, Asset Management, Investment Banking, Private Equity, Commodity Broking, Currency Broking, Principal Strategies & Home Finance.

Motilal Oswal Securities is a group company of Motilal Oswal Financial Service Limited which started as a stock trading company and has blossomed into well diversified firm offering a range of financial products and services. Motilal Oswal has built a reputation as the source for best stock trading company and this has taken a wealth of experience, knowledge and expertise, constantly working in tandem, over the years.

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MOSL: PRISM CEMENT (Buy)-Strong beat led by cement division

MOSL: PRISM JOHNSON (Buy)-Significant miss led by higher costs

MOSL: PRISM JOHNSON (Buy)-Healthy margins in cement-TBK and RMC suffer

MOSL: PRISM JOHNSON (Buy)-Cement division drives profitability

MOSL : HOME FIRST FINANCE COMPANY: Earnings in-line with sustained improvement in asset quality

MOSL : SHOPPERS STOP: Ticking the right boxes

MOSL : ERIS LIFESCIENCES: Enhanced efforts toward product launch-related activities

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