UltraTech Cement: UltraTech’s margins are expected to improve, driven by the turnaround at its acquisition and setting up of new Waste Heat Recovery System capacities to reduce power consumption, the brokerage said. Debt is also expected to decline sharply over the next two years as there is negligible planned Capex, it added.
Ambuja Cements: The company is setting up a 3.1 mt clinker line and 1.8 mt cement grinding unit at its greenfield plant Marwar-Mundwa in Rajasthan. Under the leadership of new MD and CEO, Neeraj Akhoury, MOSL expects it to deliver on cost as well as market share. It further expects EBITDA to turn positive from the current quarter.
ACC: The brokerage is positive on ACC as it has arrested its market share losses since 2017. It added that with planned capacity expansions in 2022, the proportion of inefficient assets would decline, improving profitability.
JK Cement: The company is best placed in the industry to benefit from the robust north India market as it is the only company with new integrated capacity in the region, said the brokerage. Volume growth is also expected to be much higher for JK Cement versus peers, given its recent expansion, MOSL further noted.
Dalmia Bharat: The firm, with capacity expansion in eastern India, is well-placed to gain market share in the region, the brokerage said. It estimates Dalmia’s volume at a 5.4 percent CAGR in FY20–22E. It is positive as the commissioning of new capacities and says ongoing deleveraging should drive upside.