Buy Orient Cement, target price Rs 389: Axis Securities

Axis Securities has a buy call on Orient Cement with a target price of Rs 389. The current market price of Orient Cement is Rs 346.65 and the time period given by the analyst is a month when Orient Cement price can reach the defined target. Orient Cement, incorporated in 2011, is a Small Cap company with a market cap of Rs 7127.57 crore, operating in the Cement sector. Orient Cement's key products/revenue segments include Cement, Scrap and Power for the year ending 31-Mar-2024.

Financials
For the quarter ended 31-12-2024, the company has reported a Standalone Total Income of Rs 645.87 crore, up 17.94% from last quarter Total Income of Rs 547.60 crore and down -14.25% from last year same quarter. The total Income of Rs 753.22 crore. The company has reported net profit after tax of Rs 10.14 crore in the latest quarter.


The company?s top management includes Mr.Chandrakant Birla, Mr.Desh Deepak Khetrapal, Mr.Rabindranath Jhunjhunwala, Mrs.Amita Birla, Mr.Rajeev Jhawar, Mr. Swapan Dasgupta, Mr.I Y R Krishna Rao, Mrs.Varsha Vasant Purandare. Company has S R Batliboi & Co. LLP as its auditors. As on 31-12-2024, the company has a total of 21 crore shares outstanding.

Investment Rationale
A strong bullish candlestick confirms that Orient Cement has broken out of a multiple resistance zone around 346, signaling the start of an uptrend. The stock is trading above its key short and medium-term moving averages (20-, 50-, 100-, and 200-day), reflecting a positive bias. On the daily chart, the stock is forming higher highs and higher lows, indicating a positive bias in the short term. Additionally, the weekly RSI has crossed above its reference line and a downward-sloping trendline, confirming a buy signal. Analysis indicates an upside of 379-389 levels. The holding period is 3 to 4 weeks.

Promoter/FII Holdings
Promoters held 37.86 per cent stake in the company as of 31-Dec-2024, while FIIs owned 6.76 per cent, DIIs 15.71 per cent.