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Shares of India Cements rolled 13% to Rs 303 on January 22, complying with frustrating Q3FY25 outcomes
India Cements (Representative photo)
Shares of India Cements rolled 13% to Rs 303 on January 22, complying with frustrating Q3FY25 results that highlighted the business’s expanding monetary difficulties.
The business reported a considerable widening of its standalone bottom line for the quarter, which saw a sharp rise contrasted to the Rs 16.51 crore loss published throughout the very same duration in 2014.
Additionally, India Cements’ internet sales for the quarter stopped by 17.35% YoY, being up to Rs 903.16 crore from Rs 1,081.88 crore in Q3 FY24.
The business’s Profit Before Interest, Taxes, Depreciation, and Amortization (PBIDT) additionally saw a high decrease, going down to Rs 177.79 crore from Rs 265.89 crore in the very same quarter of the previous year.
Operationally, India Cements taped a concrete ability usage of 57% for the quarter, while its residential sales quantity expanded 5% YoY on a combined basis.
In December 2024, UltraTech got 32.72% of India Cements’ equity share resources, boosting its overall shareholding in the business to 55.49%.
India Cements Share Price Performance
Over the previous year, India Cements’ share cost increased 26.74%, however it has actually decreased by 9.25% over the last 6 months and 11.46% in the last 3 months. Year- to-date (YTD), the supply has actually dropped by 15.45%.
Analysts recommend that the procurement by UltraTech can offer a much-needed increase to the battling business. The harmonies from UltraTech’s functional knowledge, economic situations of range, price optimization, and large circulation network are anticipated to enhance India Cements’ competition.
However, in spite of these tactical benefits, the near-term monetary expectation stays tough. Analysts at Motilal Oswal have actually kept a ‘Sell’ ranking on the supply, valuing India Cements based upon a substitute price (EV/t of $100) and establishing a target cost of Rs 310.
Of 6 expert suggestions on Trendlyne, 4 experts have a ‘strong sell’ ranking, one has a ‘sell’ ranking, and one recommends holding the supply.
The typical target cost for India Cements is Rs 225, suggesting a 30% drawback over the following year.
