Mangalam Cement stock zooms 20% on robust June quarter results

Shares of Mangalam Cement were locked in the upper circuit limit of 20 per cent at Rs 263 on the BSE on Tuesday after the company reported a record quarterly net profit of Rs 33 crore for June quarter (Q1FY20). The company had posted a net loss of Rs 15 crore in the year-ago quarter.
Operational revenue during the quarter jumped 31 per cent to Rs 333 crore against Rs 255 crore registered in the corresponding quarter of the previous fiscal. EBITDA (earnings before interest, tax, depreciation and amortisation) margin improved substantially to 20.4 per cent in Q1FY20 from 1.9 per cent in the corresponding quarter of the previous fiscal.

In the entire previous financial year 2018-19 (FY19), Mangalam Cement reported net loss of Rs 9.73 crore, due to a maintenance shutdown and non-availability of fly ash hit the company’s overall performance.

“Even though its FY19 performance was hit (by the maintenance shutdown), we expect the company’s performance to improve because of healthy demand and savings from the Waste Heat Recovery Systems (WHRS) plant. Further, the company is taking steps to solve the fly ash non-availability issue in Aligarh,” analysts at Anand Rathi Financial Services had said in a company report dated May 16, 2019. The stock has achieved the brokerage target price of Rs 263 per share.

Till 12:30 pm, a combined 323,293 shares changed hands and there were pending buy orders for 9,076 shares on the BSE and NSE. The stock had hit a 52-week high of Rs 288 on May 28, 2019 in the intra-day trade.

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