India Cements share price rises 5% to 52 -week high: Anand Rathi expects another 28% gains for the stock. Here’s why

Stock Market Today: India Cements share price gained more than 5% to scale 52-week high during the intraday trades on Tuesday. India Cements share price opened at ₹310, slightly higher than previous close of ₹307.40. India Cements share price thereafter continued to gain and scaled 52 week highs of ₹323.40 on the NSE on Tuesday, marking gains of more than 5% .

India Cements has been in news post India's largest Cement Manufacturer UltraTech buying 23% shareholding.

Anand Rathi Investment Services has given target price of ₹410 for India Cements share price with a stop loss of ₹260. Here's why Anand Rathi expects more than 28% upside for the stock now trading at close to ₹320 levels-

Technical view

On the technical charts India Cements share price has made several attempts since the year 2008 to clear the hurdle of 300 mark and this time finally it succeeded in doing that.

India Cement share price has confirmed a multiyear breakout above ₹300 mark and that is a significant development as per Anand Rathi analysts.

The stock has confirmed a multiyear breakout above ₹300 mark and that is a significant development.

Anand Rathi advises traders to go long in the stock in the range of 318 – 302 with a stop loss of 260 for the upside target of 410 in 3 – 6 months.

Improved capacity utilisations

India Cements, the Chennai headquartered cement manufacturing company has a capacity of 14.45 MTPA with eight cement plants located in Tamil Nadu, Andhra Pradesh, Telangana and Rajasthan.

UltraTech Cement has bought 7.06 crores equity shares, 23% of the holding and UltraTech will become the second-largest shareholder.

Anand Rathi highlighted that India Cements to fund efficiency improvement capex and working capital needs, has divested its 1.1 million tonne Parli Grinding Unit for Rs315 Crore.

India Cements capacity utilization as per Anand Rathi rose to 63% compared to 51% a year ago and volumes, 22.7% sequentially.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before taking any investment decisions