One specific aspect in the earnings of many cement companies in the quarter gone by was good operating margins. Cement firms have aided from easing power and fuel prices and the case wasn’t any different for South-based Company India Cements. On a y-o-y basis, its “power, oil and fuel” cost dipped 14.16% in the June quarter. Raw material prices too softened, aiding Ebitda margins, which improved by 157 basis points y-o-y.
Stand-alone net profit increased 16.35% to Rs.43.98 crore in Q1FY17. Although the stand-alone sales figure reduced slightly y-o-y, at Rs.1, 202.49 crore, Realizations, nonetheless, were a disappointment. Realization skipped by nearly 12% Y-o-Y considering the price correction seen in Andhra Pradesh/Telangana and Western markets. Yet, this fall was compensated by volumes, which grew to 23.07 lakh tonnes from 20.81 lakh tones previously. The company foresees sales volume growth at 10% for FY17.
In the meantime, the company repaid debt worth Rs.15 crore in the June quarter, because of which the stock has been rewarded. Shares of the company continued to head northwards. As of now, India Cements share price is trading at a rise of 8% at Rs. 139.85. On a year-to-date basis, the shares of the company have underperformed its peers but outperformed the Sensex.
India Cements share price forecast
India cements share price touched its 52 week high at 128.40 (09-Aug-16) while the 52 week low is seen at Rs 63.70 (25-Aug-15). The stock opened at Rs. 129.30 against its previous closing at Rs. 129.50. The Average Daily Movement of the stock is 4.16 and its average volume for last 20 days is 4291066.
For further details on the support and resistance refer to India Cements share price history.
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