Review

MANGALAM CEMENT LTD.

Ticker : 502157
FV: Rs.10
52-Week H/L: Rs.339.90/193


We had recommended Mangalam Cement in volume no. 35, issue no. 50 (dated October 7, 2019), when the scrip was trading at Rs. 304.55. The company is involved in cement manufacturing. We had previously recommended the scrip based on the company’s strong financial growth, including healthy balance-sheet, the support of the central region’s continued traction of strong demand, and the resilience of cement prices in the region. On the financial front on standalone basis, the company’s revenue has grown by 0.17 per cent to Rs. 289.25 crores in Q2FY20 from Rs. 288.77 crores generated in Q2FY19. For Q2FY20, the PBDT stood at Rs. 35.92 crores, significantly increasing from Rs. 6.64 crore in Q2FY19. The company gained a net profit of Rs. 14.73 crores in Q2FY20 compared to Rs. 3.13 crores gained in Q2FY19. Currently, the cement sector is looking at favorable growth for the future. Hence, we recommend a HOLD.