Equity Analysis /
India

IN : Prism Johnson Ltd - TBK leads again; margin to fall in 1HFY23F

    CGS-CIMB
    18 May 2022
    Published byCGS-CIMB

    PRSMJ’s 4QFY22 consolidated EBITDA was at Rs1.4bn, in line with our estimate (down 42% yoy but up 19% qoq) on better performance of TBK division. Factoring in higher cost inflation, we cut our FY23F-24F EBITDA estimates by ~19%-30%. The capacity expansion plan (in both cement and tiles) is on track. We retain our Add rating on the stock with a lower target price of Rs143 (from Rs158 earlier) at 9x (unchanged) FY24F EV/EBITDA.