Prism Johnson Q3 Results Review - Low-Cost Fuel Consumed Boosted Performance; Retaining A Buy: Anand Rathi

Anand Rathi Report

Prism Johnson Ltd.'s better operating performance of the cement division due to the consumption of lower-cost fuel rocketed the company’s Ebitda 131% YoY. The coming solar and wind power capacities would help it further optimise power and fuel costs.

The supply agreement with grinding units would aid volume growth. We retain our 'Buy', at a higher 12-months target of Rs 215 (earlier Rs 150).

We expect 6%/29% revenue/Ebitda compound annual growth rates over FY24-26. We introduce FY26e and retain our 'Buy' rating, with a higher 12-months target price of Rs 215 on a sum of-parts valuation.

Risks: Rise in pet-coke/diesel prices; demand slowdown.

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