Published on 13/09/2017 12:16:18 PM | Source: Reliance Securities Ltd

Buy The India Cements Ltd For Target Rs.225.00 - Reliance Sec

Posted in Broking Firm Views - Short Term Report | #Cement Sector #The Iindia Cements Ltd. #Trading Report #Reliance Securities Ltd


* India Cements (ICL) gained over ~3% in Friday’s trade on the expectation of improvement in margins and demand scenario in forthcoming quarters.

* ICL drives over 80% of its total sales from Southern and Western markets, where realizations still appear to be firm despite seasonal overhang.

* We believe that improving operating synergies and strong realization environment in Western markets will continue to pay off with improvement in profitability.

* We believe that with the recent group restructuring, ICL is likely to harness RMC business and Trinetra’s cement division in a better way.

* Further, possible reduction in interest cost with loan repayment / refinancing / rating upgrade and likely demand improvement in Southern markets augur well for ICL in the long-term.

* We maintain our fundamental BUY rating on the stock with a Target Price of Rs225.

 

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