Sell India Cements, target price Rs 79: Centrum Broking
India Cements Ltd., incorporated in the year 1946, is a Small Cap company (having a market cap of Rs 3742.01 Crore) operating in Cement sector.
By ETMarkets.com | Updated:
PTI
Promoters held 28.4 per cent stake in the company as of Sept 30, 2020, while FIIs held 12 per cent, DIIs 3.9 per cent and public and others 55.7 per cent.
Centrum Broking has given a sell rating to India Cements with a target price of Rs 79. The share price moved up by 0.29 per cent from its previous close of Rs 119.60. The stock’s last traded price is Rs 119.95.
India Cements Ltd., incorporated in the year 1946, is a Small Cap company (having a market cap of Rs 3742.01 Crore) operating in Cement sector.
Financials For the quarter ended 30-09-2020, the company reported a Consolidated sales of Rs 1089.96 Crore, up 42.77 % from last quarter Sales of Rs 763.46 Crore and down -14.14 % from last year same quarter Sales of Rs 1269.40 Crore. Company reported net profit after tax of Rs 75.38 Crore in latest quarter.
Investment Rationale The stock price at the current rich valuations (9.5x EV/EBTIDA, FY22e) is due to investor action (by ace investor) that continues to keep the divergence in target price (based on weak fundamentals) and the market price of the stock. Promoter/FII Holdings Promoters held 28.4 per cent stake in the company as of Sept 30, 2020, while FIIs held 12 per cent, DIIs 3.9 per cent and public and others 55.7 per cent.
