>INDIA CEMENTS LIMITED (ICL): International coal prices soften (Coal spot Richard Bays index)

Prices, volumes, costs better than expected

• Cement volumes could impress due to a lower base
• Prices unexpectedly stable down south despite rains
• Revised FY12 EPS up by 12%, FY13 by 7%
• Raised target price by 13% on rollover to FY13: Maintain Buy

Valuation: At its CMP,the stock offers strong value. On FY13 estimates, ICL trades at an attractive EV/tonne of US$63, a 45% discount to replacement cost. After rolling over valuations to FY13, at a conservative 30% discount to replacement cost, we up our target price by 13% to Rs 106 - a 51% upside from current levels. Reiterate BUY


To read the full report: ICL
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