Sharekhan has maintained its hold rating on India Cements with a price target of Rs 160 in its report dated June 30, 2009.

"India Cements has announced its Q4FY2009 results. For the quarter, the adjusted net profit came in at Rs 104.2 crore as against our estimate of Rs 107.8 crore. The adjusted net profit declined by 22.5% year on year (yoy). The net sales increased by 3.6% yoy to Rs 888.5 crore. The figure includes revenues from Indian Premier League (IPL), wind power and shipping businesses. The cement dispatches for the quarter fell by 5.3% yoy at 2.32 million metric tonne (MMT). The dispatches dipped mainly on account of unscheduled breakdown at Vishnupuram, Chilamkur and Yerraguntla facilities along with planned stoppage at one of the kilns at Vishnupuram facility. We maintain Hold recommendation on stock as the stock could underperform in the near term due to seasonal weakness in monsoon. We are rolling over our valuation on FY2011 and have arrived at a price target of Rs 160 (valued at EV/tonne of $72 on FY2011 capacity), " says Sharekhan's research report.

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