India Cements may test Rs 65-70: Aashish Tater

Aashish Tater, Head of Research of Fortunewizard.com told CNBC-TV18, "All know what has happened with Yeduguri Sandinti Jaganmohan Reddy’s case and India Cements got punished very severely. But now taking a call on what happens from next two months perspective; yesterday he got the bail and all the stocks that got battered will see some part of short covering."

He further added, "If you see the cement, it is happening even in south, the valuations; there is one private deal that has happened which is roughly 35 percent rate of premium to what India Cements is trading. So, that gives me a fair value of Rs 67-70 on conservative side despite we are not that bullish on cement sector as a whole because of the off take. So, even conservatively we feel this will be Rs 65-70 stock from next 30-40 days session given the negative news hang is over on the stock and now people will look for some fundamental picks.”
“India Cements  is relatively trading at less than 300 crore odd per tonne compared to any other company which is trading at 550-675 on lower side and ACC and Ambuja Cements are trading at 900-1,000 crore of capacity in terms of tonnage. So, that arbitrage is there which will definitely benefit this company from hereon." Disclosure: Safe to assume stock discussed may have been recommended to clients.