Accumulate India Cements: Edelweiss Research

India Cements BSE | NSE 13/02/12 Are Mutual Funds betting on India Cements?

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.