Buy India Cements, target price Rs 130: Kotak Securities

Kotak Securities has given a buy rating to India Cements with a target price of Rs 130. The share price moved down by 1.20 per cent from its previous close of Rs 125.25. The stock’s last traded price is Rs 123.75.

India Cements Ltd., incorporated in the year 1946, is a Small Cap company (having a market cap of Rs 3881.46 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
Range breakout from a rectangle formation supported by incremental volume activity.

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.