Buy Prism Johnson, target price Rs 152: Anand Rathi

Anand Rathi has buy call on Prism Johnson with a target price of Rs 152. The current market price of Prism Johnson Ltd. is Rs 123.35. Time period given by analyst is one year when Prism Johnson Ltd. price can reach defined target.

Prism Johnson Ltd., incorporated in the year 1992, is a Mid Cap company (having a market cap of Rs 6218.97 Crore) operating in Cement sector.

Prism Johnson Ltd. key Products/Revenue Segments include Cement, Sale of services, Other Operating Revenue, Scrap and Export Incentives for the year ending 31-Mar-2021.



Financials
For the quarter ended 31-12-2021, the company reported a Consolidated Total Income of Rs 1647.42 Crore, up 8.36 % from last quarter Total Income of Rs 1520.30 Crore and up 7.52 % from last year same quarter Total Income of Rs 1532.15 Crore. Company reported net profit after tax of Rs -2.29 Crore in latest quarter.

Investment Rationale
The seasonal effect and high input prices curbed Prism Johnson’s cement division performance; its TBK divisions’ performances revived with the economy opening up, a low base and expanded margins. While demand is good, high costs may cut into profitability, though partially offset by price hikes and the rising proportion of renewable energy. The cement and HRJ expansions are on track. The brokerage retains Buy rating, with a lower TP of Rs.152 (earlier Rs.153).

Promoter/FII Holdings
Promoters held 74.87 per cent stake in the company as of 31-Dec-2021, while FIIs owned 3.35 per cent, DIIs 6.92 per cent.