Brokerage firm Motilal Oswal has recommended a Buy rating on Shree Cements. The scrip was the most trending stock on BSE 100 on Monday, July 31 and there is expectation that it would rally in the coming 12 months too.

By end of closing hours on Monday, the scrip had recorded an over 5.5% lead in intra-day session. On Tuesday the scrip took a loss of Rs 361, but is trading at Rs 18276.90 at 12:37 PM on BSE.

Analysts at Oswal although forecast the scrip to touch Rs 22360, a 22% jump from its current trading price. It has already achieved 20560, its 52 week high, on May 15 2017.

Motilal Oswal in a daily note suggested that ShreeCem' EBITDA beat is driven by better realization and lower other expenses. The note in fact talks of the stock deserving a premium valuation.

The Beawar, Rajasthan headquartered cement-maker has been rated as the most cost-efficient player in the cement sector. "In our view, SRCM deserves to trade at premium valuations, and we thus value the cement business at 15x EV/EBITDA to arrive at a target price of INR 22,360," read the note.

The cement-maker posted the quarterly updates for its quarter ending June. The volumes have increased nearly 15% YoY (-1% QoQ) to 5.89mt, led by capacity ramp-up in east, with utilization in excess of 90-95%. Volume realization have risen by nearly 10% QoQ (+6.7% YoY) due to higher cement prices in north and east markets.

Revenue has also increased 15% YoY to Rs 2536 crore, of which cement revenue has grown by 22% YoY). Power revenue declined 54% to Rs 95.8 crore, while power EBITDA of Rs 1.4 crore has been attributed to weak merchant power rates.