SPA Research report on Orient Cement (OCL) Orient reported subdued set of numbers with ~20.0% decline in earnings largely owing to 10.2% decline in cement volumes. While weak demand resulted in lower volumes, the same was accentuated by sharp fall in cement prices (particularly Maharashtra region which accounts for ~60% of Orient’s volumes) as realizations sequentially declined by 8.1%. Resultantly EBIDTA/tonne declined by 35.1% QoQ to INR 610. Additional 3 mt green-field unit in Karnataka remains on track and is set to commence operations from H2FY16. We continue to retain our “BUY” rating on the stock with a target of INR 224.
