Broking house, Edelweiss Research is bullish on India Cements and has recommended accumulate rating on the stock.
Edelweiss Research report on India Cements:
We met the management of India Cements recently. The key takeaways from the interaction were:
Capacity expansion of 3 mtpa by March 2008
Pan-India strategy in the long term
Market mix to shift away from Andhra Pradesh, post expansion
Strong demand drivers in south, especially in Andhra Pradesh, but market fragmented
Cement cycle outlook: Short-term positive
Valuations remain attractive, but, given the impending cycle reversal and possible overcapacity in south, we re-iterate 'ACCUMULATE' rating on the stock.
