Radhakishan Damani Stock India Cements Hits 52W-High: More Steam Left?

India Cements Limited is a cement manufacturing company based in Chennai. In terms of revenue, it is the ninth-largest listed cement firm in India. India Cements' stock began trading on the BSE on Monday at Rs. 274.80 a share, and in the morning session, it hit a new 52-week high of Rs. 275.35. India Cements' stock has returned 22% year to date, but Mr Aditya Gaggar, Director of Progressive Shares, is more optimistic about the company and has issued a buy call with a target price of Rs330-Rs389 and a holding period of six to nine months.

India Cements Share Price Target

"We recommend a BUY on the company at current market price of Rs271 or decline upto Rs260 with a closing stop loss of Rs225 for a target of Rs330-Rs389 with a horizon of 6-9 months," said Aditya Gaggar, Director of Progressive Shares.

Investment Rationale

According to Aditya Gaggar, Director of Progressive Shares, here is the investment rationale for India Cements.
India Cements Ltd has given a breakout from a continuation pattern known as Symmetrical Triangle Formation.
Leading Momentum Indicator RSI replicates price activity by giving a breakout from a triangle pattern.
Trend following indicator MACD has given a positive crossover.
The price breakout was confirmed with an upsurge in Volumes.

India Cements Financials

According to an exchange filing from India Cements Ltd (ICL), the company's consolidated net loss for the second quarter ended on September 20, 2023, narrowed to Rs 85.54 crore from Rs 121.10 crore during the July-September period of the previous year. During Q2FY24, its revenue from operations was Rs 1,264.39 crore, down 4.72% from Rs 1,327.06 crore in Q2FY23. In comparison to the negative EBIDTA of Rs 87 crore in the second quarter of the previous year, ICL's EBITDA for the period was Rs 14 crore in the second quarter of the current financial year.

India Cements Shareholding Pattern

During Q2FY24, the company reported promoters' shareholding of 28.42%, FIIs stake of 13.43%, DIIs stake of 10.04% and public stake of 48.12%. As per the shareholding pattern of India Cements for the July to September 2023 quarter, Radhakishan Shivkishan Damani held 3,51,32,665 shares or 11.34% stake in the company, Radhakishan Damani's brother Gopikishan Shivkishan Damani held 2,51,16,496 shares or 8.10% stake in the company.

Disclaimer

The recommendations made above are by market analysts and are not advised by either the author, nor Greynium Information Technologies. The author, nor the brokerage firm nor Greynium would be liable for any losses caused as a result of decisions based on this write-up. Goodreturns.in advises users to consult with certified experts before making any investment decision.