Published on 23/11/2017 12:36:00 PM | Source: Reliance Securities Ltd
Buy The India Cements Ltd For Target Rs.220.00 - Reliance Sec
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* India Cements (ICL) gained ~4% in yesterday’s trade on the expectation of improvement in margins and demand scenario in forthcoming quarters.]
* ICL is having least exposure in Rajasthan (1.5mnT) and is likely to be affected to the extent of Rs20-25/tonne (at 25% cost spread) due to ban on usage of petcoke, which we believe is insignificant.
* We believe that improving operating synergies and likely pick up realization environment in key markets will continue to pay off with improvement in profitability.
* ICL is likely to harness RMC business and Trinetra’s cement division in a better way with the recent group restructuring.
* We maintain our fundamental BUY rating on the stock with a Target Price of Rs220.
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