Prism Cement Limited (PCL) is an Integrated Building Materials company, and has
wide range of products from cement, ready mixed concrete (RMC), tiles, bath
products to kitchens (TBK). Its cement plant is located in central India with units in
Satna (Madhya Pradesh) with a capacity of 7 MTPA. It currently operates 87 ready
mixed concrete plants spread across 40 cities/ towns in India. Its TBK division is
better known as H & R Johnson (India) and it was established in 1958.Outlook & Valuation: PCL is a direct beneficiary of government’s focus on
affordable housing and higher spending on infrastructure projects. Thus, we
expect cement segment to continue to report better profitability. Further, PCL’s
efforts to revive TBK segment has also witnessed volume growth in Q2FY2018.
Improvement in TBK division and debt reduction plan would improve return ratio.
We value the company on SOTP and recommend a BUY on Prism Cement with a
Target Price of `131.

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