Rajesh Agarwal, Director - Research at Eastern Financiers Limited told CNBC-TV18, " Shree Cements - with new capacity additions done, one unit has been started and the management is hopeful that the capacity utilization would be around 90 percent which was 80 percent in the previous quarter. I think the numbers are going to be good, the power division is doing well, the EBITDA on power is very well with cost coming down, the plant being fully depreciated and we believe that FY14 earnings per share (EPS) would be in the range of Rs 320-325 and the cash EPS to be in the range of Rs 450-460. That gives enough comfort to recommend investment in the stock.”
“We have a price target of around Rs 4,800 in the next six-nine months. The volumes are pretty low because 65 percent of the holding is with the promoters and some institutions are holding around 8-10 percent that is why volumes are quite low but if one is a long-term investor then one can accumulate at dips" he added.
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