For Orient Cement Ltd, reviving its bond with investors could be a tough row to hoe. For Orient Cement, the big worry for investors has been its high leverage. Orient Cement's profitability was among the worst in the sector, with ebitda/tonne falling to ₹ 251 in Q3 FY19. A moderate increase in cement prices can aid a large jump in earnings given low Ebitda/ton at present," Kotak Institutional Equities said in a report Monday. The stock is trading at a one-year forward enterprise value/ebitda of 7.81 times, making valuations unattractive, keeping in mind the company’s earnings performance.

Source: Mint February 11, 2019 21:22 UTC