Broker’s Call: Prism Johnson (Buy)
Elara Securities
Prism Johnson reported a 4% YoY increase in consolidated EBITDA to about ₹190 crore in Q2FY27, but a 7% QoQ decline due to heavy rain affecting sales volume. Cement sales grew by 2% YoY to 1.66 million tonnes, but QoQ they fell by 10% due to adverse weather conditions. The tiles business showed margin improvement, while the cement division faced lower margins due to higher input costs.
The company's balance sheet strengthened, with effective net debt declining to ₹467 crore from ₹888 crore in Q4FY26. Prism Johnson is expected to benefit from construction activity recovery post monsoon in H2FY27, especially in Central India. While fuel costs and seasonal demand recovery pose challenges, the company's 49.5-MW wind power agreement and exit from the loss-making insurance business will help lower electricity costs and support earnings growth. The analysts maintain a Buy rating with a target price of ₹135.
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