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Entry Price

138.00

Target

200.00

Recommend Date

09-01-2017

Return

-44.93 %
BUY

Date : 09-01-2017

Kesoram, with 7.25 MT cement capacity in Andhra Pradesh (AP) and Karnataka, is expected to be a key beneficiary of a demand revival in the southern regions, especially in AP and Telangana. The company has maintained average EBITDA/tonne of ~| 800 in FY12-16. In good market conditions, it has the potential to go above | 1000/tonne (as seen in FY12). Assuming 75.0% capacity utilisation and | 1000 EBITDA/tonne, the company is expected to register EBITDA of ~| 545.0 crore in coming years